SaaS MoR Fee Calculator.
Compare your exact net SaaS revenue across Paddle, Lemon Squeezy, Dodo Payments, FastSpring, 2Checkout, and DIY Stripe Tax side-by-side.
| Platform | Fee Structure | Total Fee | Net Take-Home | Tax Remittance |
|---|---|---|---|---|
| Dodo Payments | 4.5% + $0.40 | -$4.86 | $94.14 | ✓ Automated MoR |
| Paddle | 5.0% + $0.50 | -$5.45 | $93.55 | ✓ Automated MoR |
| Lemon Squeezy | 5.0% + $0.50 | -$5.45 | $93.55 | ✓ Automated MoR |
| 2Checkout 2Monetize | 6.0% + $0.60 | -$6.54 | $92.46 | ✓ Automated MoR |
| FastSpring | 8.9% Flat | -$8.81 | $90.19 | ✓ Automated MoR |
| DIY Stripe + Stripe Tax | 2.9% + $0.80 | -$3.67 | $95.33 | ✗ Founder must file taxes |
SaaS MoR Migration & Tipping Point Simulator
When should a software founder switch from a Merchant of Record (Paddle / Lemon Squeezy) to Direct Stripe + Quaderno? Solve the exact algebraic indifference point: Cost(MoR) = Cost(Direct PSP) + Tax Compliance Overhead.
Triggers EU VAT OSS / foreign tax nexus
At your monthly volume of $45,000, paying 5% to an MoR costs $2,709/mo vs $2,365/mo for Direct Stripe + automated sales tax software.
Includes global liability assumption, EU VAT OSS remittance, invoice generation, and customer chargeback shielding.
Includes Stripe processing (2.9% + 30¢), Stripe Billing (0.7%), Stripe Tax (0.5%), plus $250/mo for CPA quarterly filings.
Mandatory Financial Notice:
FeeFlow is an independent comparison tool and is not endorsed by or affiliated with any listed platform. All calculations reflect verified 2026 published fee schedules.
SaaS Fee Architecture & Cost Breakdown (2026)
Understanding payment deductions on SaaS requires evaluating fixed per-transaction fees, percentage processing cuts, and platform commissions:
Bank transfer rail with strict dollar fee caps, saving thousands on large corporate contracts.
Standard credit card acceptance on invoices for clients prioritizing points or corporate cards.
Optional fee to transfer invoice proceeds to your debit card within 30 minutes instead of 2-day bank clearing.
Mathematical Profit & Breakeven Derivations
Setting selling prices without accounting for blended transaction deductions causes margin erosion. Use this algebraic gross-up formula:
Reverses payment processing deductions so the client covers fees and you receive 100% of your consulting contract.
Strategic Margin Defense: 4 Protocols for SaaS
Implement these operational treasury tactics to maximize net take-home earnings:
Incentivize ACH on Invoices Above $500: Leverage the $5-$10 fee cap to save 90%+ compared to credit card processing.
Add Gross-Up Surcharges for Credit Cards: Specify in contract payment terms that card payments incur a 3% processing convenience fee.
Automate Weekly Late Payment Reminders: Trigger automated invoice reminders to accelerate DSO (Days Sales Outstanding).
Disable Instant Payout Options: Rely on standard 2-day ACH settlement to eliminate the 1.5% instant transfer penalty.
Fee Wealth Leakage Radar & Profit Drag
Multi-Rail Arbitrage ("Switch & Save")
%
Pass Fee to Client (Legal Surcharge Engine) Calculate zero-shortfall compliant markup & legal surcharge limits
• United States: Visa & Mastercard cap credit card surcharges at 3.00% (effective April 2023). Surcharging debit or prepaid cards is strictly illegal under federal operating rules.
• UK & European Union: Surcharging consumer debit and credit cards is prohibited under PSD2. B2B / corporate card surcharges remain permitted.
• Australia: Governed by RBA; surcharging is legally restricted strictly to the merchant's actual cost of card acceptance.
Client Invoice Message
Bookkeeping Journal Entry
Recent Calculations (Click to Restore)
Frequently Asked Questions
What is a Merchant of Record (MoR) and how does it differ from a standard payment gateway? ▼
A standard gateway (Stripe) only processes payments, leaving global tax registration, sales tax remittance, and compliance to the seller. A Merchant of Record (Paddle, Lemon Squeezy) legally sells the software to the end customer, assuming 100% liability for global VAT/GST/sales tax remittance, chargebacks, and invoicing compliance.
What are standard Merchant of Record fees for software and SaaS in 2026? ▼
Leading MoR platforms charge between 5.0% + $0.50 and 8.0% + $0.50 per transaction. This fee covers payment processing, automated sales tax calculation/remittance in 100+ countries, multi-currency conversion, and fraud liability.
At what Annual Recurring Revenue (ARR) should a SaaS company switch from an MoR to DIY Stripe? ▼
Startups and micro-SaaS companies under $500,000 ARR save immense legal and accounting costs with an MoR. Once a SaaS exceeds $1,000,000 ARR, the 5% MoR fee ($50,000+/year) outweighs the cost of direct Stripe processing (2.9%) + automated tax software (Stripe Tax, Avalara), making DIY acquiring more profitable.
How do international sales tax and EU VAT compliance costs affect MoR decisions? ▼
Sellers without an MoR must register for VAT/GST in the EU (via OSS), UK, Canada, Australia, and individual US states once economic nexus thresholds ($100k sales) are crossed. Filing quarterly foreign tax returns costs $10,000 to $30,000 annually in accounting overhead.
How do Merchants of Record handle chargeback disputes and customer refunds? ▼
Because the MoR is the legal entity on the buyer's credit card statement, the MoR absorbs dispute handling, provides pre-dispute fraud alerts, and covers chargeback administrative penalties.
What payout settlement schedules and reserve requirements apply to MoR platforms? ▼
MoR providers typically payout weekly or bi-weekly via wire transfer, ACH, or PayPal. New software founders may be subject to a 5% to 10% rolling reserve for 90 days to guard against sudden chargeback spikes.
Can SaaS companies offer local European payment methods (iDEAL, Bancontact, SEPA) through an MoR? ▼
Yes. Paddle and Lemon Squeezy natively support European local rails (iDEAL in Netherlands, Bancontact in Belgium, SEPA Direct Debit, Giropay, Apple Pay, Google Pay) with zero separate merchant agreements.
How does MoR pricing compare to Stripe Billing and Stripe Tax? ▼
Stripe charges 2.9% + $0.30 processing + 0.70% for Stripe Billing + 0.50% for Stripe Tax, totaling ~4.1% + $0.30 (and you still have to file and remit taxes yourself). An MoR charges ~5.0% + $0.50 and handles 100% of filing and liability.