The percentage fee applies to the final charge. This arithmetic does not determine whether surcharging is permitted.
Try this with your own numbersFormula and worked example
Charge = (required receipt + fixed fee) / (1 − percentage fee)
| Input | Example |
|---|---|
| Required net receipt | 500 |
| Processor fee | 2.9 % |
| Fixed transaction fee | 0.3 |
| Calculated result | 515.242 |
Choose reliable inputs
Account for delivery time, review work and when you expect to be paid for each engagement. For this insurance agency calculation, use time sheets, engagement scopes and invoice ageing and a consistent definition of one policy sale.
- Lead costs: include the portion belonging to this policy sale or reporting period, and record where the value came from.
- Service time: include the portion belonging to this policy sale or reporting period, and record where the value came from.
- Renewal work: include the portion belonging to this policy sale 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.
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.