Currency conversion fee calculation for Shopify Payments orders
On April 6, 2026, the calculation for currency conversion fees and Multi-Currency Payout fees on Shopify Payments orders is changing. This makes them easier to understand and reconcile with your payouts and reports.
Old currency conversion calculation method
When a customer pays with Shopify Payments, the currency conversion fee is calculated using the following formula:
(Gross order − Shopify Payments fees) × Currency conversion fee rate ÷ (1 + Currency conversion fee rate).
This means the fee is calculated on the net order amount, after other applicable fees are deducted. Your effective currency conversion rate is lower than your stated rate.
Example: Old currency conversion calculation method
The following example demonstrates how the old calculation method applies to an order from a Canadian customer, for a US shop with a 1.5% currency conversion fee rate:
- A customer places a $100 CAD order.
- Assuming your Shopify Payments (SP) fees are $3 CAD, that is deducted, resulting in a net order amount of $97 CAD.
- Your effective currency conversion rate on the gross order is lower than the stated 1.5%.
New currency calculation method
Starting on April 6, 2026, currency conversion fees and Multi-Currency Payout fees on Shopify Payments orders are calculated directly on the gross order amount. You might notice small differences in these fees as this change takes effect.
Example: New currency conversion calculation method
With this update, the currency conversion fee is now calculated directly on the gross order amount, without deducting any fees first. The following example demonstrates the updated method for a typical order for a US shop with a 1.5% currency conversion fee rate:
- A customer places a $100 CAD order.
- The currency conversion fee is calculated directly on the gross amount: $100 CAD × 1.5%
- Your effective currency conversion rate matches exactly your stated rate of 1.5%.