> ## 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.

# Transaction Cost per Order: Average Payment Processing Cost

> Track transaction cost per order for your Shopify store. Measure the average payment processing fee per order.

<Tip>
  Transaction Cost per Order measures the average payment processing fee per order—Shopify Payments, Stripe, PayPal, and other gateway fees.
</Tip>

## Formula

<Info>
  **Transaction Cost per Order** = **Total Transaction Costs** ÷ **Orders**
</Info>

### Formula Components

| Metric                                                                                      | Definition                    |
| ------------------------------------------------------------------------------------------- | ----------------------------- |
| [**Total Transaction Costs**](/reference/metrics/orders/transaction/total-transaction-cost) | Total payment processing fees |
| [**Orders**](/reference/metrics/orders/counts/orders)                                       | Count of orders               |

| Metadata        |                                                                                      |
| --------------- | ------------------------------------------------------------------------------------ |
| **Type**        | Currency                                                                             |
| **Data Source** | [Shopify](/sources/catalog/shopify), [Upstack Costs](/sources/catalog/upstack-costs) |
| **Aggregation** | Average                                                                              |

***

## Example

Your Shopify store has **\$4,500** transaction costs across **1,000** orders.

| Component                      | Value      | Calculation     |
| ------------------------------ | ---------- | --------------- |
| Transaction Costs              | \$4,500    | Payment fees    |
| Orders                         | 1,000      | Order count     |
| **Transaction Cost per Order** | **\$4.50** | \$4,500 ÷ 1,000 |

***

## How It Works

Transaction costs are typically calculated as a percentage of revenue plus a fixed fee per transaction (e.g., 2.9% + \$0.30). Higher AOV orders have lower transaction cost as a percentage.

***

## When to Use

| Scenario                | Action                               |
| ----------------------- | ------------------------------------ |
| CM2 calculation         | Transaction costs reduce CM1         |
| Payment method analysis | Compare costs by payment type        |
| Pricing decisions       | Factor transaction fees into margins |
| Gateway comparison      | Evaluate payment processor costs     |

***

## Related Metrics

| Metric                                                                               | Relationship                   |
| ------------------------------------------------------------------------------------ | ------------------------------ |
| [Transaction Cost](/reference/metrics/orders/transaction/total-transaction-cost)     | Total payment fees             |
| [Transaction Cost %](/reference/metrics/orders/transaction/transaction-cost-percent) | Percentage of revenue          |
| [CM2 per Order](/reference/metrics/orders/contribution-margin/cm2-per-order)         | Margin after transaction costs |

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