Stripe settlement formulas

International, manual-entry, and currency-conversion categories can overlap, so their add-ons are each applied to the entered eligible subset. The model assumes the subsets are already correctly classified; it does not limit their sum to gross volume.

Worked $100,000 U.S. Stripe example

The default business completes 1,000 online card payments totaling $100,000. A 2.9 percent base rate plus 30 cents produces $3,200. International-card volume of $15,000 adds $225 at 1.5 percent; $5,000 of manually entered volume adds $25 at 0.5 percent; and $10,000 requiring currency conversion adds $100 at 1 percent. Total processing cost is $3,550.

The balance then absorbs $3,000 of refund principal and $1,000 of disputed principal. Two disputes at $15 add $30, leaving $92,420 before a reserve or payout-speed fee. A modeled 2 percent reserve on $96,000 of post-adjustment principal holds $1,920, so $90,500 is available for payout.

Half of that balance, $45,250, remains on the standard schedule. The other half is requested instantly, and a 1.5 percent fee reduces it by $678.75 to $44,571.25. Combined bank proceeds are $89,821.25. The 6.18 percent total fee-and-hold rate includes a reserve that may later be released, so it is not identical to permanent expense.

Read the current pricing layer by layer

Stripe’s U.S. public pricing currently lists 2.9 percent plus 30 cents for successful domestic online card transactions, with published additions for manual entry, international cards, and currency conversion. It also lists a separate U.S. Instant Payout percentage and dispute fees. Custom pricing can differ materially.

Do not feed ACH Direct Debit, bank transfer, buy-now-pay-later, stablecoin, Terminal, or Link Instant Bank Payment volume into a card-only rate unless the contract actually prices it that way. Build a separate stream for every material payment method, including its percentage cap, fixed charge, failure, verification, refund, and settlement rules, then combine the net balance transactions.

Refund principal and processing fees move differently

A refund returns customer principal through the Stripe balance. Stripe’s standard-pricing FAQ currently says that issuing refunds generally has no additional fee for most payment methods, but original payment-processing, Connect, and currency-conversion fees are not returned. Bank-transfer methods and custom schedules can differ.

This calculator subtracts refund principal while leaving the original processing fee in the cost layer. It does not estimate a second refund fee. Canceling a payment before completion can behave differently from refunding a succeeded charge, and a refund can remain pending if the available balance is insufficient.

Track refund amount, original payment method, reason, product, days since purchase, fees retained, inventory recovery, return shipping, and customer outcome. Net payout alone does not measure the profit cost of a return.

Disputes require a principal and fee bridge

When a cardholder disputes a payment, disputed principal can be removed from the available balance and a dispute-received fee can apply. Current pricing also lists a separate fee for a manually countered dispute, with stated treatment if the dispute is won or lost. Network and product-specific fees may also appear.

The calculator models only disputed principal and the received fee. It does not model countering fees, Smart Disputes, recovered principal, won-dispute credits, network assessments, fulfillment loss, or staff time. Use the Dashboard’s balance transactions to reconcile the actual lifecycle.

Preserve receipt, delivery, customer communication, policy acceptance, identity, and device evidence within legal and network requirements. Improve billing descriptors, cancellation flow, support, fraud screening, and shipping proof to prevent avoidable disputes.

A reserve is held liquidity, not automatically an expense

A payment processor may hold funds because of risk, account history, disputes, delivery timing, industry, or other underwriting. Reserve design and release timing can be account-specific. Enter zero if no reserve applies; otherwise use the actual notice or a clearly labeled scenario.

The model applies the reserve percentage to gross principal after refunds and disputed principal. The Dashboard may calculate holds on another base or schedule. Reconcile reserve additions, releases, negative balance recovery, and rolling periods separately from revenue and processing expense.

A company can be profitable and still face a cash shortage if reserves, refunds, disputes, or payout delays rise. Include processor-held funds in the cash forecast according to expected release date, not as immediately available bank cash.

Instant Payout is a liquidity decision

Stripe’s current U.S. standard pricing lists a 1.5 percent fee on eligible Instant Payout volume with a minimum charge, while the standard schedule is described as free. Eligibility and Connect pricing can differ. The calculator applies the percentage but does not model the minimum, bank eligibility, timing, or limits.

Compare the fee with the cost of waiting: overdraft, missed discount, payroll risk, inventory opportunity, or avoided borrowing. Repeated instant use can be expensive relative to better working-capital forecasting. Requesting only the amount needed may be more economical than accelerating the full balance.

Do not confuse an Instant Payout from Stripe balance with a customer payment becoming final. Refunds, disputes, and negative balances can still affect later settlements.

Reconcile Stripe to bank, books, and tax

Gross charges, refunds, disputes, application fees, tax, Connect transfers, reserves, processing fees, and payouts can span different dates. Bank deposits are not a substitute for gross revenue records. Sales tax collected may be a liability, while gift cards and subscriptions can create deferred revenue.

Use balance transaction IDs and reporting categories to build a bridge from charges to available balance to payout to bank. Reconcile timing differences and currency. Decide expense classifications under the company’s accounting policy and preserve invoices and reports.

Tax treatment depends on the business, entity, jurisdiction, documentation, and current law.

Stripe payout audit checklist

1. Export successful balance transactions.
2. Confirm payment methods and rates.
3. Count fixed-fee transactions.
4. Tag international cards.
5. Tag manual entries and FX.
6. Reconcile refund principal.
7. Retain original processing fees.
8. Bridge dispute principal and fees.
9. Identify reserve holds and releases.
10. Separate standard and instant payouts.
11. Tie payout IDs to bank deposits.
12. Archive the pricing agreement.

Frequently asked questions

References

• Stripe U.S. pricing for Payments, disputes, and Instant Payouts
• Stripe Documentation, refunds and cancellations
• Stripe Documentation, how disputes work
• Stripe Support, U.S. Instant Payout pricing update
• Stripe Documentation, balance reporting categories and types