From 15 Oct 2026 · not a tax
UPI MDR calculator for merchant payments
Type a bill. ₹3,000 is ₹12. ₹2,000 is ₹0. Customer pays nothing. Monthly view uses your typical bill — not a “share of value” guess.
From 15 October 2026. This is not a tax. The merchant pays MDR; the customer always pays ₹0.
What kind of payment?
MDR on this bill
₹12.00
Customer pays ₹0. GST on the MDR is extra — see the lines below.
₹3,000.00 × 0.4% = ₹12.00
Official examples — tap to try
| Bill | MDR |
|---|---|
| ₹0 | |
| ₹12 | |
| ₹20 | |
| ₹200 | |
| ₹300 | |
| ₹300 |
Source: Finance Ministry / PIB 15 Sep 2026. Banks must not pass MDR to the customer. App providers cannot add a platform fee on UPI.
Read the full explainer →FAQ
UPI MDR questions
Is the new UPI charge a tax?
No. The Finance Ministry said MDR is neither a tax nor a charge collected by the government or NPCI. From 15 October 2026 it is a merchant discount rate paid to banks and app providers on some person-to-merchant UPI payments above ₹2,000. 18% GST may apply on that MDR; registered merchants can usually claim ITC.
Who still pays nothing?
Person-to-person transfers stay free at any amount. Merchant payments of ₹2,000 or less stay free. Small merchants collecting up to ₹1 lakh a month on UPI QR (P2PM) stay on zero MDR. The government says about 96% of P2M transactions remain unaffected.
How do I know if I am a P2PM small merchant?
Ask the acquiring bank or the PhonePe / GPay business app whether this VPA is tagged P2PM. GSTIN is not required. Three consecutive months of inward UPI above ₹1 lakh typically moves you to chargeable P2M. This site cannot see the tag from a UPI ID. Full checklist: https://www.proupiqr.in/blog/p2pm-small-merchant-upi-mdr/
Can I add 0.4% on the customer's bill?
No. Banks have been told not to let merchants pass MDR to customers, and UPI apps cannot add a platform fee. Price your goods as you like; do not show a UPI surcharge on the bill.
How is this different from a payment gateway?
A typical gateway still takes about 2% + 18% GST (2.36%) on cards. UPI MDR is 0.4% and only on P2M above ₹2,000, capped at ₹300. Direct UPI remains far cheaper. Compare both in this calculator.
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