Restaurant Effective Rate Calculator

Find your true credit card processing cost in under 30 seconds… then compare POS quotes to lower it.

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Quick Calculator

Formula: Effective Rate = (Total Processing Fees ÷ Total Card Volume) × 100

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Enter your volume and fees, then click "Compute."

Example

MetricValue
Total Card Volume$85,000
Total Processing Fees$2,450
Effective Rate2.88%

Tip: If your rate is consistently above ~3%, it's time to compare offers or address add-on fees.

How to Use This

  1. Pull last month's statement (or POS payout report).
  2. Sum all processor fees (statement total) and enter as "Fees."
  3. Enter gross card volume for the same month as "Volume."
  4. Compute, then benchmark against previous months.
Lower your effective rate: remove junk fees, verify PCI/gateway costs, favor card-present over keyed, train staff to avoid key-entry, and compare POS quotes.
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What's a "Good" Effective Rate?

Most full-service restaurants land between 2.2% and 3.5%+, depending on mix and fees.

There's no single perfect number. Focus on consistency and a downward trend over time — not a one-off outlier month.

Owner Outcomes vs. Line-Item Features

  • Predictable net rate: fewer junk fees and cleaner statements.
  • Faster table turns: handhelds + tap-to-pay reduce walk-aways and re-swipes.
  • Higher tip capture: better on-screen prompts improve take-home without raising prices.

Ready to benchmark offers? Head to our POS page and request quotes.

FAQs

What's the difference between flat-rate and interchange-plus?

Flat-rate is simple (one blended % + per-transaction). Interchange-plus passes through card network costs plus a transparent markup. Either can win depending on your mix — the effective rate reveals which is cheaper for you.

How often should I calculate effective rate?

Monthly. Track it alongside average ticket and card-present ratio. If you change POS or pricing models, compare 90 days before vs. 90 days after.

Will dual pricing or surcharging help?

Often, yes — where compliant. Dual pricing can push your effective rate near zero on card transactions. Confirm local rules first, train staff, and deploy clear signage.