UPI MDR Calculator
See exactly how much of the new UPI Merchant Discount Rate you'll pay on a transaction, and what you'll actually receive.
Your inputs
Based on the framework the Finance Ministry and NPCI announced on 15 September 2026, effective 15 October 2026. UPI stays completely free for customers and for person-to-person transfers — MDR applies only to merchants on person-to-merchant (P2M) payments, and banks have been directed not to let merchants pass this cost on to customers.
MDR by transaction amount
| Transaction amount | MDR | Merchant receives |
|---|---|---|
| ₹1,000 | ₹0 | ₹1,000 |
| ₹2,000 | ₹0 | ₹2,000 |
| ₹5,000 | ₹20 | ₹4,980 |
| ₹10,000 | ₹40 | ₹9,960 |
| ₹25,000 | ₹100 | ₹24,900 |
| ₹75,000 | ₹300 | ₹74,700 |
| ₹1,00,000 | ₹300 | ₹99,700 |
MDR by merchant category
| Category | MDR at ₹5,000 |
|---|---|
| Standard merchant | ₹20 |
| Essential services | ₹5 |
| Capital markets | ₹1 |
Small-merchant exemption tracker
Merchants with ₹1 lakh or less in monthly UPI QR receipts pay zero MDR regardless of category.
Estimated monthly MDR cost
A rough estimate using your average transaction size and monthly transaction count — actual cost varies with your real transaction mix.
Estimates only. Figures are indicative and do not constitute financial advice.
About the UPI MDR Calculator
On 15 September 2026, the Finance Ministry and NPCI announced that a Merchant Discount Rate (MDR) will apply to certain UPI person-to-merchant (P2M) payments for the first time, effective 15 October 2026 — a genuine change after years of UPI being completely fee-free for everyone. "UPI MDR calculator," "UPI charges calculator," and "0.4% UPI MDR" are all the same question: exactly how much does this cost, and who actually pays it. This calculator gives you the precise number for any transaction instead of relying on a WhatsApp forward.
The short version: nothing changes for individuals sending or receiving money to other individuals (P2P) — that stays free regardless of amount, forever, as it always has been. MDR applies only to payments made to merchants (P2M) above ₹2,000, and even then, only 0.4% of the transaction, capped at ₹300, and charged to the merchant, not the customer — banks have been directed to ensure merchants can't pass this cost on to shoppers. Over 95% of UPI P2M transactions are under ₹2,000 and remain completely untouched by this change.
Enter a transaction amount, pick the merchant category, and enter the merchant's monthly UPI QR receipts (small merchants get a full exemption) to see the exact MDR, the rule that applies, and what the merchant actually receives after the deduction.
How to use this calculator
- Enter the transaction amount.
- Select the merchant category (standard, essential services, or capital markets).
- Enter the merchant's total monthly UPI QR receipts, to check the small-merchant exemption.
- See the exact MDR, the rule applied, and the amount the merchant actually receives.
Frequently asked questions
›Will I be charged extra when I pay a shop using UPI?
No — customers pay exactly the amount shown, with no extra charge either now or after 15 October 2026. MDR is deducted from what the merchant receives, not added to what you pay, and banks have been specifically directed to prevent merchants from passing this cost on to customers.
›Do UPI transfers between two individuals (P2P) attract MDR?
No — person-to-person UPI transfers remain completely free regardless of amount. MDR applies only to person-to-merchant (P2M) payments above ₹2,000.
›What counts as a 'small merchant' with zero MDR?
Merchants receiving up to ₹1 lakh per month through UPI QR codes directly into their account continue to pay zero MDR on all their transactions, regardless of individual transaction size, under the announced framework.
›Why do railways, fuel, and insurance have a different rate?
Essential-services categories (railways, telecom, insurance, fuel, agriculture) get a flat ₹5 fee per transaction above ₹2,000 instead of the 0.4% standard rate, keeping costs predictable and low for high-volume essential payments.
›When does the UPI MDR actually take effect?
The framework was announced on 15 September 2026 and is set to take effect from 15 October 2026. As with any new framework, exact operational details could still be refined by NPCI before the effective date — check NPCI's official circular for the final, binding version.
›Has UPI become paid now, or is it still free?
UPI is still free for you as a customer, and free entirely for person-to-person transfers regardless of amount. The only change is a small, capped fee (0.4%, or less for some categories) that certain merchants pay on payments above ₹2,000 — nothing is charged to the person sending money.
›UPI par charge kab se lagega, aur kisko lagega?
15 October 2026 se, sirf dukaandar/merchant ko ₹2,000 se zyada ke payment par 0.4% MDR dena padega — grahak (customer) se koi extra charge nahi liya jaayega, aur do logon ke beech paisa bhejna (P2P) hamesha ki tarah bilkul free rahega.
›Does this affect Google Pay, PhonePe, and Paytm the same way?
Yes — MDR is set at the UPI network level by NPCI, not by individual apps, so the same rules apply regardless of which UPI app a customer or merchant uses to send or receive the payment.
›How much MDR will my business pay in a typical month?
Use the monthly cost estimate below the main calculator — enter your average transaction size and how many UPI transactions you process a month for a rough estimate of total monthly MDR cost.
›How close am I to losing the small-merchant exemption?
See the small-merchant exemption tracker below — it shows exactly how much headroom you have below the ₹1 lakh/month UPI QR receipts threshold, or by how much you've exceeded it.
What affects upi mdr?
- Transaction amount
- Transactions at or below ₹2,000 are always free; above that, MDR applies based on category, capped at ₹300 for larger transactions.
- Merchant category
- Essential services (railways, telecom, insurance, fuel, agriculture) pay a flat ₹5 instead of the 0.4% standard rate; capital markets pay a lower 0.02%.
- Monthly UPI QR receipts
- Small merchants receiving ₹1 lakh or less per month through UPI QR codes are fully exempt from MDR, regardless of individual transaction size or category.
Related calculators
Read the full guide
UPI MDR Explained: What the New 0.4% Charge Actually Means (Oct 2026)