A projection is only as useful as the assumptions behind it. ISOHub’s residual calculator estimates two markup revenue streams, applies your agent split, and projects a portfolio over time. It does not read your agreement or predict your payout.
Start with revenue, not processing volume.
Monthly processing volume is the amount merchants process. In this model, revenue comes from a percentage markup on that volume plus net per-transaction markup. The merchant’s total processing rate does not belong in the markup field: pass-through costs are outside this calculation.
Revenue per merchant
(monthly volume × markup ÷ 100)+ (transactions × net revenue per transaction)
Estimated agent residual per merchant
Revenue per merchant × agent split ÷ 100Enter markup as percentage points: 0.20 means 0.20%, which is 0.002 in the multiplication. Enter the split as a percentage: 60 means 60%. Both fields divide by 100 in the formula.
Follow one illustrative scenario.
These numbers are invented to demonstrate the calculator. They are not recommended pricing, typical earnings or a claim about any processor’s terms.
- Monthly volume per merchant
- $25,000.00
- Markup
- 0.20%
- Monthly transactions per merchant
- 400
- Net revenue per transaction
- $0.04
- Agent split
- 60%
- Starting merchants
- 10
- New merchants each month
- 1
- Monthly attrition
- 2%
- Percentage markup: $25,000.00 × 0.20% = $50.00 per merchant.
- Transaction markup: 400 × $0.04 = $16.00 per merchant.
- Combined revenue: $66.00. At a 60% split, the estimated agent residual is $39.60 per merchant per month.
- With 10 starting merchants, the current monthly estimate is $396.00, before the omitted costs below.
Review this example in the calculator →
The example link lets you review all eight assumptions before applying them. Opening it does not save a scenario or replace your inputs automatically.
Attrition happens before new merchants are added.
Month 0 represents today’s portfolio. Each later month first reduces the previous month’s expected merchant count by attrition, then adds the new merchants. In the example, month 1 is 10 × 0.98 + 1 = 10.8 expected merchants. A fractional count represents an expected portfolio size, not a literal fraction of a merchant account.
Every remaining and newly added merchant contributes a full month of revenue. There is no partial-month onboarding, delayed activation or payout lag. Volume, transaction count, pricing, split, acquisition and attrition stay constant throughout the projection.
| Month | Expected merchants | Monthly residual | Cumulative residual |
|---|---|---|---|
| 0 · today | 10 | $396.00 | Not included |
| 1 | 10.8 | $427.68 | $427.68 |
| 2 | 11.584 | $458.73 | $886.41 |
Displayed dollars are rounded to cents. The projection carries unrounded values into later months.
Annualized and cumulative tell different stories.
Annualized means a selected month’s residual multiplied by 12. Month 1 in this example is $427.68, so its annualized run rate is $5,132.16. That is not the sum of a changing portfolio’s next 12 monthly payments.
Cumulative adds the estimates from month 1 through the selected month. It excludes month 0. Here, the first two projected months total $886.41.
Check the agreement before trusting the estimate.
Use these as questions to take to your ISO or processor. They are not an interpretation of your agreement and do not establish a right to payment.
- What revenue is eligible? Confirm which percentage and transaction amounts enter the split, and whether the stated per-transaction amount is net of costs.
- What is deducted first? Ask for the exact treatment of fees, adjustments, losses, reserves, minimums and any other deductions in your payout calculation.
- When does a merchant start contributing? Verify activation requirements, processing thresholds, payment timing and partial-month treatment.
- When can the split or payout change? Identify any volume tiers, exclusions, ongoing obligations, termination provisions or other conditions in your specific agreement.
- Can you reconcile a real payout? Ask for an itemized example that connects eligible revenue, deductions and the split to the amount paid.
Keep costs and uncertainty visible.
The calculator excludes taxes, operating costs, losses, reserve adjustments and contract deductions. It also does not model seasonality, merchant-by-merchant differences, changes in volume, equipment costs, sales commissions paid to others, or the cost of acquiring and supporting merchants. Its result is a planning estimate, not take-home profit or guaranteed earnings.
Start with assumptions you can explain. Pin that scenario for comparison, then try slower acquisition, higher attrition or a lower eligible markup. Review the difference at 12, 24, 36 and 60 months. Keep a separate cost plan and reconcile the model against actual payout statements as information improves.