Total Transaction Cost: Combined Payment Processing Fees

The total cost of processing payments, combining gateway fees and any additional user-defined transaction costs.

Formula

Total Transaction Cost = Gateway Cost + Other Transaction Cost

Formula Components

Metric	Definition
Gateway Cost	Payment gateway processing fees including flat and percentage-based fees
Other Transaction Cost	User-defined transaction costs from order cost entries

Metadata
Type	Currency
Data Source	Shopify
Aggregation	Sum

Example

Your store processed $125,000 in orders this month with $4,875 in total transaction costs:

Component	Amount	% of Revenue
Gateway Cost	$3,750	3.0%
Other Transaction Cost	$1,125	0.9%
Total Transaction Cost	$4,875	3.9%

How It Works

Total Transaction Cost aggregates all payment-related fees from your orders. Gateway costs are pulled from Shopify’s transaction data, while Other Transaction costs come from user-defined order cost entries with the “Transaction” category. This metric is deducted from CM1 to calculate CM2.

When to Use

Scenario	Action
Calculating contribution margin	Deduct from CM1 alongside fulfillment costs
Evaluating payment processors	Compare total processing costs across gateways
Pricing strategy	Factor transaction costs into product margins
Profitability analysis	Track how payment fees impact net margins

Metric	Relationship
Gateway Cost	Component: payment processor fees
Other Transaction Cost	Component: user-defined transaction costs
Gateway Cost %	Gateway fees as percentage of revenue
CM1	Margin before transaction and fulfillment costs
CM2	Margin after deducting this cost

See all Transaction Cost metrics →

Other Transaction Cost NC Gateway 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