> ## 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 %: Payment Processing Rate

> Track transaction cost percentage for your Shopify store. Measure payment processing fees as a percentage of revenue.

<Tip>
  Transaction Cost % measures payment processing fees as a percentage of revenue—showing the true cost of accepting payments.
</Tip>

## Formula

<Info>
  **Transaction Cost %** = **Total Transaction Costs** ÷ **Total Revenue** × 100
</Info>

### Formula Components

| Metric                                                                                      | Definition                    |
| ------------------------------------------------------------------------------------------- | ----------------------------- |
| [**Total Transaction Costs**](/reference/metrics/orders/transaction/total-transaction-cost) | Total payment processing fees |
| [**Total Revenue**](/reference/metrics/orders/revenue/total-revenue)                        | Total order revenue           |

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

***

## Example

Your Shopify store has **\$4,500** transaction costs on **\$150,000** revenue.

| Component              | Value     | Calculation         |
| ---------------------- | --------- | ------------------- |
| Transaction Costs      | \$4,500   | Payment fees        |
| Total Revenue          | \$150,000 | Order revenue       |
| **Transaction Cost %** | **3.0%**  | \$4,500 ÷ \$150,000 |

***

## How It Works

Transaction Cost % varies by payment method and order size. Credit cards typically cost 2.4-3.0%, while Shop Pay and other methods may differ. Higher AOV reduces the effective percentage due to fixed per-transaction fees.

***

## Benchmarks

| Rating    | Range       |
| --------- | ----------- |
| Excellent | \< 2.5%     |
| Typical   | 2.5% – 3.0% |
| High      | 3.0% – 3.5% |
| Very High | > 3.5%      |

Note: International transactions and certain card types cost more.

***

## Related Metrics

| Metric                                                                                         | Relationship                   |
| ---------------------------------------------------------------------------------------------- | ------------------------------ |
| [Transaction Cost](/reference/metrics/orders/transaction/total-transaction-cost)               | Absolute amount                |
| [Transaction Cost per Order](/reference/metrics/orders/transaction/transaction-cost-per-order) | Per-order average              |
| [CM2 %](/reference/metrics/orders/contribution-margin/cm2-percent)                             | Margin after transaction costs |

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