Gateway Cost %: Payment Fees as Share of Revenue

Payment gateway cost as a percentage of net revenue.

Formula

Gateway Cost % = ( Gateway Cost ÷ Net Revenue ) × 100

Formula Components

Metric	Definition
Gateway Cost	Total payment gateway processing fees
Net Revenue	Revenue after discounts and refunds

Metadata
Type	Percentage
Data Source	Shopify
Aggregation	Ratio

Example

Your store processed $125,000 in net revenue with $3,125 in gateway fees:

Month	Net Revenue	Gateway Cost	Gateway Cost %
January	$125,000	$3,125	2.5%
February	$142,000	$3,692	2.6%
March	$118,000	$2,832	2.4%

How It Works

Gateway Cost % divides total payment gateway fees by net revenue, showing what percentage of each sale goes to payment processing. This metric helps benchmark processor costs—typical rates range from 2% to 3% depending on payment method mix and processor agreements.

When to Use

Scenario	Action
Processor benchmarking	Compare your rate against industry standards (2-3%)
Negotiating rates	Use historical data to negotiate better processor terms
Payment method analysis	Identify high-cost payment methods driving up fees
Margin optimization	Find opportunities to reduce transaction costs

Metric	Relationship
Gateway Cost	Numerator—total gateway fees
Net Revenue	Denominator—revenue after adjustments
Gateway Cost Per Order	Per-order view of gateway fees
Total Transaction Cost	Includes gateway plus other transaction costs

See all Transaction Cost metrics →

Gateway Cost Per Order Other Transaction Cost

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​Formula

​Formula Components

​Example

​How It Works

​When to Use

​Related Metrics

Formula

Formula Components

Example

How It Works

When to Use

Related Metrics