UPI MDR calculator 2026
Calculate UPI charges on any merchant payment under the rules that start on 15 October 2026. This free UPI charges calculator shows the MDR per payment, the GST on that fee, what you receive and your yearly cost. It also checks the ₹1 lakh small-merchant exemption for you.
What will UPI MDR cost you?
Based on NPCI FAQs dated 15 September 2026 and the NPCI GST clarification of 22 September 2026. GST-registered merchants can usually claim GST on MDR as input tax credit. Rates for educational institutions are not modelled. Source: Department of Financial Services and NPCI. Confirm your rate with your bank or payment provider.
How UPI charges above ₹2,000 work
- 0.4% MDR on person-to-merchant payments above ₹2,000
- Capped at ₹300 for payments of ₹75,000 and above
- Flat ₹5 for railways, telecom, fuel and insurance
- 0.02% for capital markets, capped at ₹300
- Free for customers, P2P transfers, UPI AutoPay mandates and small QR merchants
- 18% GST applies to the MDR fee, not the payment
How is UPI MDR calculated?
For standard merchants, MDR is 0.4% of each person-to-merchant UPI payment above ₹2,000, capped at ₹300 per payment.
Is a ₹2,000 UPI payment charged?
No. MDR applies only to merchant payments above ₹2,000.
Do small merchants pay UPI MDR?
No. Merchants who receive up to ₹1 lakh a month through UPI QR codes keep zero MDR.
Can merchants charge customers the MDR?
No. Merchants cannot recover MDR from customers as a separate charge.
Is UPI AutoPay charged MDR?
No. UPI AutoPay and other recurring mandates do not carry a prescribed MDR under the 2026 framework.
Is there GST on UPI MDR?
Yes. 18% GST applies to the MDR fee, not the payment. On a ₹10,000 sale, MDR is ₹40 and GST is ₹7.20. GST-registered merchants can usually claim it back as input tax credit.
Will customers pay extra on Google Pay, PhonePe or Paytm?
No. Customers pay nothing extra on any UPI app. The fee sits with the merchant.
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