Cash Handling Cost Calculator: Is Cash Costing You More Than Cards?
Plenty of small business owners still like cash because it feels free. There's no 1.69% coming off the top. But cash has its own costs, and they don't arrive as a neat line on a statement. They turn up as bank charges, trips to the Post Office, time spent counting tills and the odd £20 that goes missing.
This calculator puts a number on all of that, then compares it with what you'd pay to take the same money by card.
The interactive calculator is loading. If it doesn't appear, the worked example below shows the same sums.
What to enter
- Monthly cash takings
- Your bank's cash deposit fee, as a percentage or a charge per £100
- Banking trips per week
- Minutes per trip, including the walk, the queue and the paperwork
- Hourly cost of whoever goes, including your own time if it's you
- Minutes per day spent counting and reconciling cash
- Shrinkage, the share of cash you lose to errors, theft or counterfeit notes
- Card rate to compare against
How the sums work
Cash cost = deposit fees + trips per week x 4.3 x minutes per trip / 60 x hourly cost + daily counting time x days open / 60 x hourly cost + takings x shrinkage
Effective cash rate = cash cost / cash takings
Card cost = takings x card rate + any fixed fees
We use 4.3 weeks a month. If you insure cash on the premises or pay for collections, add those as extra monthly costs.
The hidden costs of cash
Deposit fees
Many business accounts charge to pay cash in. As an example, Starling's business account charges 0.7% with a £3 minimum for cash deposits at the Post Office (checked October 2026). Traditional banks often charge a fee per £100 deposited once you're past any free period. Check your own tariff sheet. It's usually a PDF on your bank's site.
Time
Counting a till, bagging coins, filling in a paying in slip and queuing at a branch or Post Office takes longer than people think. If it's you doing it, that's time you're not serving customers or doing your books.
Losses
Cash is easy to miscount, short change or pocket. Counterfeit notes are rarer than they were, but they happen. Most businesses don't track this, so we let you put in an estimate. Even 1% adds up.
Security and insurance
Holding cash overnight can affect your insurance, and some businesses pay for a safe or a collection service.
Getting to a bank
Branches keep closing. If your nearest one has gone, you may be relying on a Post Office or a banking hub. Our piece on UK cash machine deserts looks at how access is changing by region.
Worked example
A takeaway takes £4,000 a month in cash. The owner banks twice a week, each trip takes 30 minutes, and they value their time at £13 an hour. Counting the till takes 10 minutes a night over 26 days. Their bank charges 0.7% on cash deposits. We've assumed 1% shrinkage.
| Cost | Monthly figure |
|---|---|
| Deposit fees (0.7% of £4,000) | £28.00 |
| Banking trips (2 x 4.3 x 0.5 hours x £13) | £55.90 |
| Counting (26 x 10 minutes x £13 an hour) | £56.33 |
| Shrinkage (1%) | £40.00 |
| Total cost of cash | £180.23 |
| Effective rate | 4.5% |
The same £4,000 taken on a reader at 1.69% would cost £67.60 a month. Even at 1.75% it's £70. The cash costs more than double, though most of it is time rather than money leaving the account.
Your own result could be lower. If you bank once a week, pay no deposit fees and keep tight control of the till, the effective rate might be 1% or 2%. That's still not free.
Card vs cash breakeven
The calculator shows the card rate at which cards and cash cost the same. For most small businesses with any deposit fees and weekly banking, that rate comes out well above typical card fees. Cash is cheapest when:
- Your bank doesn't charge for deposits
- You can bank on the way home with no extra trip
- Takings are small and counting takes a few minutes
- Losses are genuinely close to zero
Should you go cashless?
Not necessarily. Some customers still prefer cash, especially older people and anyone budgeting carefully. UK Finance found cash made up 8% of all UK payments in 2025. A sensible middle ground is to keep taking cash but nudge people towards cards, and bank less often.
Pros of cutting cash
- Less time counting and banking
- Fewer losses and shortages
- Money lands in your account automatically
Cons
- You lose some cash-only customers
- Card fees are a visible cost
- You depend on your card machine and signal working
If you're weighing up readers, our best card machines guide and tap to pay explainer are good next steps. For accounts with low cash fees, see our business bank accounts guide.
FAQs
How much does it cost a business to handle cash?
It depends on deposit fees, how often you bank and your losses. Many small businesses land somewhere between 1% and 5% of cash takings once staff time is included.
Is it cheaper to take cards than cash?
Often, yes, once you count time and losses. Card fees for small businesses typically run at 1% to 1.75%.
Do business bank accounts charge for cash deposits?
Many do. Some charge a percentage, others a fee per £100, and some include a free allowance. Check your bank's business tariff.
Should I count my own time in the calculator?
Yes. Your time has a value even if you don't pay yourself an hourly wage. Use what you'd pay someone else to do it.
Can a business refuse cash in the UK?
Generally, yes. Shops can decide which payments they accept, as long as they make it clear before the customer buys.