UPI MDR Calculator
Enter a payment amount and your type of business to see the UPI MDR you will pay from 15 October 2026 and what reaches your bank account. Add your monthly volume to see the cost over a month and a year.
Quick answer
Status on 11 October 2026: NPCI is considering moving the start date to January 2027 after requests from merchants and fintechs, but no final decision has been announced, so 15 October remains the scheduled date. From 15 October 2026, merchants pay a merchant discount rate (MDR) of 0.4% on specified UPI payments above ₹2,000, capped at ₹300 (reached at ₹75,000). Railways, telecom, insurance, fuel and agricultural inputs pay a flat ₹5, and mutual fund and securities payments pay 0.02% capped at ₹300. Person-to-person transfers and any payment up to ₹2,000 stay free, and customers are not charged.
How to use the UPI MDR Calculator
- Enter the payment amount.
- Choose your type of business.
- Read the MDR and the amount you receive.
- Optionally enter how many payments above ₹2,000 you get each month to estimate your monthly and yearly cost.
Worked example
A ₹5,000 payment at a general shop: MDR ₹20, you receive ₹4,980. A ₹2,000 payment: no MDR. A ₹1,00,000 payment: MDR capped at ₹300. A ₹10,000 fuel payment: flat ₹5. 300 payments a month averaging ₹4,500: ₹5,400 a month, ₹64,800 a year.
Formula
If payment ≤ ₹2,000 or person-to-person: MDR = 0 General merchants: MDR = min(0.4% × payment, ₹300) Railways, telecom, insurance, fuel, agri inputs: MDR = ₹5 Mutual funds, securities: MDR = min(0.02% × payment, ₹300)
Frequently asked questions
Do customers pay the 0.4% UPI charge?
No. MDR is charged to the merchant by the bank or payment aggregator. Paying by UPI stays free for customers, and person-to-person transfers are free at any amount.
Is a payment of exactly ₹2,000 charged?
No. MDR applies only to payments above ₹2,000. A ₹2,000 payment is free; ₹2,001 attracts ₹8.
What is the maximum MDR on one payment?
₹300. At 0.4% the cap is reached at ₹75,000, so any larger payment is charged ₹300.
Which businesses pay only ₹5?
Railways, telecom, insurance, fuel and agricultural inputs pay a flat ₹5 on eligible payments above ₹2,000.
Can I split a bill to stay under ₹2,000?
Customers can choose to pay in parts, but deliberately splitting invoices to avoid charges can conflict with your bank or app's terms. Check with your provider before doing it.
Has the Supreme Court stopped the UPI MDR?
No. In late September 2026 the Supreme Court issued notice to the Centre, RBI and NPCI on a petition against it but did not stay the 15 October rollout. We will update this page if the court changes that.
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