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Translation service Payment Fee Gross-Up: worked example

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

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Translation service / translation job economics
Answer

With the illustrative inputs below, the result is 515.242 .

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

Include software licences, delivery time, revisions and ongoing support when costing a project. For this translation service calculation, use project time logs, licence invoices and retainer scopes and a consistent definition of one translation job.

  • Translator time: include the portion belonging to this translation job or reporting period, and record where the value came from.
  • Review: include the portion belonging to this translation job or reporting period, and record where the value came from.
  • Formatting: include the portion belonging to this translation job 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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