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Take Rate

The percentage of transaction value a marketplace keeps as revenue, the platform's cut of GMV.

Take rate = platform revenue / GMV

Why it matters

Take rate turns marketplace volume into actual revenue, and it is a constant tension: too high and you push participants away, too low and the business does not work. It is central to any marketplace model.

For example

A marketplace keeps 15 rupees of every 100 rupees transacted through it, a 15 percent take rate.

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Related terms

Also in Starting Up

See how founders actually handle this on Money, pricing and metrics, part of the Starting Up hub.

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