> ## Documentation Index
> Fetch the complete documentation index at: https://docs.upstackdata.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Gateway Cost %: Payment Fees as Share of Revenue

> Track gateway cost as a percentage of net revenue. Measure payment processing fee burden and optimize processor selection for your Shopify store.

<Tip>
  Payment gateway cost as a percentage of net revenue.
</Tip>

## Formula

<Info>
  **Gateway Cost %** = ( [**Gateway Cost**](/reference/metrics/orders/transaction/gateway-cost) ÷ [**Net Revenue**](/reference/metrics/orders/revenue/net-revenue) ) × 100
</Info>

### Formula Components

| Metric                                                                 | Definition                            |
| ---------------------------------------------------------------------- | ------------------------------------- |
| [**Gateway Cost**](/reference/metrics/orders/transaction/gateway-cost) | Total payment gateway processing fees |
| [**Net Revenue**](/reference/metrics/orders/revenue/net-revenue)       | Revenue after discounts and refunds   |

| Metadata        |                             |
| --------------- | --------------------------- |
| **Type**        | Percentage                  |
| **Data Source** | [Shopify](/sources/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          |

***

## Related Metrics

| Metric                                                                                 | Relationship                                  |
| -------------------------------------------------------------------------------------- | --------------------------------------------- |
| [Gateway Cost](/reference/metrics/orders/transaction/gateway-cost)                     | Numerator—total gateway fees                  |
| [Net Revenue](/reference/metrics/orders/revenue/net-revenue)                           | Denominator—revenue after adjustments         |
| [Gateway Cost Per Order](/reference/metrics/orders/transaction/gateway-cost-per-order) | Per-order view of gateway fees                |
| [Total Transaction Cost](/reference/metrics/orders/transaction/total-transaction-cost) | Includes gateway plus other transaction costs |

[See all Transaction Cost metrics →](/reference/metrics/orders/transaction)