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Dance school: Why does adding the fee percentage leave a shortfall?

Find the charge needed to retain a chosen amount after payment processing.

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Dance school / class place economics
Answer

The percentage fee applies to the final charge. This arithmetic does not determine whether surcharging is permitted.

Try this with your own numbers

Formula and worked example

Charge = (required receipt + fixed fee) / (1 − percentage fee)

Example figures
InputExample
Required net receipt500
Processor fee2.9 %
Fixed transaction fee0.3
Calculated result515.242

Choose reliable inputs

Connect teaching time, preparation, attendance and room capacity to each lesson or class. For this dance school calculation, use attendance records, teaching schedules and room costs and a consistent definition of one class place.

  • Teaching time: include the portion belonging to this class place or reporting period, and record where the value came from.
  • Rent: include the portion belonging to this class place or reporting period, and record where the value came from.
  • Enrollment handling: include the portion belonging to this class place or reporting period, and record where the value came from.

Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.

Why does adding the fee percentage leave a shortfall?

The percentage fee applies to the final charge. This arithmetic does not determine whether surcharging is permitted.

Compare a different assumption

What if this input changes?

If required net receipt rises by 10%, this example changes by 51.4933 . This shows the effect of one change; it does not predict what will happen.

Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.

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