How to Calculate Square Fees
Square's processing fees are calculated as a percentage of the transaction size plus a fixed transaction cost. When you accept payments from clients online, these processing fees are taken directly out of the balance, reducing your final payout.
To receive your desired target amount, you must calculate the gross amount you charge. Because Square assesses fees based on the gross amount of the transaction, simple addition is incorrect and will leave you short. You must utilize the reverse fee calculation equation instead.
The reverse calculation formula is: Gross = (Net + Fixed Fee) / (1 - Percentage Fee)
For example, if you aim to clear exactly $100.00 USD under standard Square processing rates (2.9% + $0.30 fixed fee), the math is: ($100.00 + $0.30) / (1 - 0.029) = $100.30 / 0.971 = $103.30. By invoicing your client $103.30, Square will deduct a fee of $3.30 ($2.99 + $0.30), leaving you with a net payout of exactly $100.00.