Grubhub is one of the three major delivery platforms in the United States, and its fee structure works differently from DoorDash and Uber Eats in one important way: Grubhub explicitly separates marketplace commission from delivery fees. This split-model pricing means that restaurants paying for Grubhub-provided delivery see two distinct charges on every order, while pickup and self-delivery restaurants pay only the marketplace commission. Understanding how these components stack up — and where additional charges like marketing premiums and Grubhub+ adjustments add up — is essential for calculating your true cost per order.
Most restaurant operators know their Grubhub commission rate but have not calculated what they actually pay after all fee components are applied. As one restaurant owner wrote: “Hidden fees you have to watch — overcharges on credit card processing.” The marketplace commission is just the starting point. Payment processing, marketing premiums for increased visibility, Grubhub+ subscriber adjustments, refund deductions, and retroactive corrections all increase the effective rate. For a restaurant doing $12,600 per month in Grubhub orders, the gap between the contracted rate and the effective rate can represent $400 to $800 per month in charges that go untracked. This page gives you the calculation methodology to close that gap.
How to Calculate Grubhub Fees: Step-by-Step
Calculating your total Grubhub cost requires understanding the split between marketplace and delivery charges, then layering on the additional fees that apply to every order:
Step 1: Determine your marketplace commission. Grubhub’s marketplace commission covers listing your restaurant on the platform, order processing, and customer support. This rate typically ranges from 15% to 20% of the order subtotal before taxes and tips. Your specific rate depends on your contract and market.
Step 2: Add delivery fees (if applicable). If Grubhub provides the delivery driver, an additional delivery fee applies. This is typically around 10% of the order subtotal or a flat per-delivery charge, depending on your agreement. Restaurants handling their own delivery or offering pickup-only orders skip this component.
Step 3: Add payment processing fees. Grubhub charges approximately 2.5% of the total transaction for credit and debit card processing. This applies to every order regardless of order type or delivery model.
Step 4: Factor in marketing premium costs. If your restaurant pays for Grubhub marketing programs — sponsored listings, loyalty programs, or featured placement — these charges are added to your base fees. Marketing premiums are typically percentage-based and can add 5% to 15% per promoted order.
Step 5: Account for Grubhub+ adjustments. Grubhub+ is Grubhub’s subscription program offering members free delivery. Restaurants may see additional subsidy charges on Grubhub+ orders where the platform passes a portion of the waived delivery fee to the restaurant.
Step 6: Subtract refund deductions. Customer refunds that Grubhub charges back to the restaurant appear as payout deductions. These can add 1–2% to your effective rate depending on your refund frequency.
Step 7: Calculate your effective rate. Sum all deductions for a payout period, divide by gross order revenue, and multiply by 100.
Grubhub Fee Components at a Glance
| Fee Component | Typical Rate | Applied To | Calculation Method |
|---|---|---|---|
| Marketplace Commission | 15% – 20% | Order subtotal | Subtotal × rate |
| Delivery Fee (Grubhub drivers) | ~10% or flat fee | Delivery orders | Subtotal × 0.10 or per-delivery |
| Pickup Commission | 5% – 10% | Pickup orders | Subtotal × rate |
| Payment Processing | 2.5% | Total transaction | Transaction × 0.025 |
| Marketing Premiums | 5% – 15% | Promoted orders | Varies by program |
| Grubhub+ Adjustments | Variable | Grubhub+ orders | Per-order subsidy charge |
| Refund Deductions | 1% – 2% of revenue | Refunded orders | Full or partial order value |
| Error Adjustments | Variable | Retroactive | Corrections to prior periods |
Key takeaway: Grubhub’s split-model pricing means your total cost depends heavily on whether Grubhub provides delivery or you handle it yourself. A restaurant paying 15% marketplace commission plus 10% delivery fee plus 2.5% processing is already at 27.5% before marketing premiums or Grubhub+ adjustments. Always calculate all fee layers together to find your effective rate.
Example Calculations
A restaurant receives a Grubhub pickup order with a $28.00 subtotal. Marketplace commission is 15% (pickup rate).
Marketplace commission (15%): $28.00 × 0.15 = $4.20
Delivery fee: $0.00 (pickup — no delivery)
Payment processing (2.5%): $28.00 × 0.025 = $0.70
Marketing premium: $0.00 (not participating)
Total deductions: $4.90
Restaurant receives: $23.10 out of $28.00
Effective rate: 17.5%
Pickup orders are the lowest-cost order type on Grubhub. The effective rate of 17.5% is 2.5 percentage points above the marketplace commission due to payment processing alone.
A restaurant receives a Grubhub delivery order with a $36.00 subtotal. Marketplace commission is 20% and Grubhub provides the driver (10% delivery fee). The restaurant participates in Grubhub’s loyalty program.
Marketplace commission (20%): $36.00 × 0.20 = $7.20
Delivery fee (10%): $36.00 × 0.10 = $3.60
Payment processing (2.5%): $36.00 × 0.025 = $0.90
Marketing premium (loyalty program): $1.80
Grubhub+ adjustment: $0.45
Total deductions: $13.95
Restaurant receives: $22.05 out of $36.00
Effective rate: 38.8%
The effective rate is nearly double the marketplace commission alone. The delivery fee and marketing premium add 18.8 percentage points on top of the 20% marketplace commission.
A restaurant processes 350 Grubhub orders per month at an average order value of $36. The order mix is 70% delivery and 30% pickup. Marketplace commission is 20% with a 10% delivery fee on delivery orders.
Monthly gross revenue: 350 × $36.00 = $12,600
Marketplace commission (20%): $2,520.00
Delivery fee (245 delivery orders × $36 × 10%): $882.00
Payment processing (2.5%): $315.00
Marketing premiums: ~$175.00/month
Grubhub+ adjustments: ~$65.00
Refund deductions (~1.2% refund rate): ~$151.20
Error adjustments: ~$30.00
Total monthly deductions: $4,138.20
Effective monthly rate: 32.8%
Over a year, this restaurant pays $49,658 in total Grubhub fees. The $1,618 monthly gap between the 20% marketplace commission ($2,520) and total deductions ($4,138) adds up to $19,418 annually — nearly as much as the marketplace commission itself.
For a deeper understanding of how delivery platform commissions are structured across all major providers, see our guide on how delivery platform commissions work.
Marketing Premium Cost Calculation
Grubhub’s marketing programs represent one of the largest variable costs beyond the base commission. Understanding the ROI of each program is critical for managing your total Grubhub expense:
| Marketing Program | Typical Cost | How It Works | ROI Consideration |
|---|---|---|---|
| Sponsored Listings | 5% – 10% per order | Higher placement in search results | Measure incremental orders vs. cost |
| Loyalty Program | $1 – $3 per qualifying order | Rewards repeat customers with perks | Track repeat order rate changes |
| Featured Placement | 10% – 15% per order | Top-of-page visibility in categories | Compare order volume before/after |
| Promotional Discounts | Shared cost with Grubhub | Customer-facing discount offers | Calculate net margin per promo order |
Marketing premiums are optional, but Grubhub’s algorithm tends to favor restaurants that participate in paid programs. Restaurants that opt out of all marketing may see reduced visibility and lower order volumes over time. The key is calculating whether the incremental orders generated by marketing programs are profitable after accounting for the premium cost.
What Most Restaurants Get Wrong
Quoting the marketplace commission as the total cost. The marketplace commission is only one of two or three major fee components. Delivery fees and marketing premiums can each add 10% or more to the effective rate. Always calculate total deductions, not just the marketplace percentage.
Not separating pickup and delivery economics. Pickup orders on Grubhub cost significantly less than delivery orders because they avoid the delivery fee component entirely. Restaurants that do not track pickup and delivery orders separately cannot accurately assess which order types are most profitable. A higher percentage of pickup orders dramatically improves your blended effective rate.
Treating marketing premiums as fixed costs. Marketing program participation is optional and should be evaluated based on measurable ROI. If a sponsored listing costs 8% per order but only generates 5% more orders than you would receive organically, the math does not work. Review marketing program performance monthly and drop programs that are not delivering incremental profit.
Ignoring Grubhub+ subsidy charges. Grubhub+ subscribers order more frequently, but the delivery fee subsidy adjustments on their orders may reduce your per-order margin. Track the net profitability of Grubhub+ orders separately. For step-by-step audit instructions covering all of Grubhub’s fee layers, see our guide on how to reconcile Grubhub statements.
Want to see how much Grubhub fees may be costing your restaurant beyond the contracted commission?
Estimate Your Revenue DiscrepanciesYour Actual vs. Contracted Rate
Tracking the gap between your contracted Grubhub rates and your actual effective rate is the most actionable metric for controlling delivery costs. Here is how to measure it:
| Metric | How to Calculate | What It Tells You |
|---|---|---|
| Contracted Rate | Marketplace commission + delivery fee from your agreement | The baseline cost you agreed to pay |
| Effective Rate | Total deductions ÷ gross order revenue × 100 | Your actual cost including all fees |
| Rate Gap | Effective rate − contracted rate | The hidden cost above your agreement |
| Monthly Gap Cost | Rate gap × monthly gross revenue | Dollar amount of fees beyond contract |
| Annual Gap Cost | Monthly gap cost × 12 | Yearly impact of the rate gap |
For a restaurant doing $12,600 per month on Grubhub with a 30% contracted rate (20% marketplace + 10% delivery), a 2.8% rate gap means $353 per month — or $4,234 per year — in charges above the contract. This gap tends to grow over time as marketing programs are added and refund rates fluctuate, making monthly tracking essential.
Estimate how much delivery fee discrepancies may be costing your restaurant.
Try the Delivery Reconciliation CalculatorWhy your Grubhub costs are higher than you think
Grubhub’s split commission model — separating marketplace fees from delivery fees — makes the true cost harder to see at a glance. Many operators focus on the marketplace rate (15–20%) and forget that the delivery commission (often another 10%), payment processing (2.5%), and marketing premiums all stack on top. The result: your effective rate can be 8–12 percentage points above the number you remember from your contract.
If you want to verify what Grubhub is actually charging, the same reconciliation approach used for DoorDash works here. Our delivery platform audit guide covers the multi-platform process, and for a complete breakdown of every Grubhub charge, see our Grubhub fees guide.
Frequently Asked Questions
Apply your marketplace commission rate (15–20%) to the order subtotal. For delivery orders, add the delivery fee (approximately 10%). Then add payment processing (2.5%), marketing premiums, and Grubhub+ adjustments. Divide total deductions by gross order revenue to find your effective rate. Most restaurants find this is 3% to 6% above their combined marketplace + delivery rate.
Grubhub separates charges into two components. The marketplace commission (15–20%) covers your listing, order processing, and customer support. The delivery fee (approximately 10% or a flat per-delivery charge) covers Grubhub providing a driver. Pickup orders only incur the marketplace commission. Restaurants using their own delivery drivers can avoid the delivery fee entirely.
Grubhub marketing premiums vary by program. Sponsored listings typically cost 5–10% per promoted order. Featured placement can run 10–15%. Loyalty programs charge $1–$3 per qualifying order. These are optional but can significantly increase your effective rate. Evaluate each program’s ROI monthly and discontinue any that do not generate profitable incremental orders.
Grubhub+ is Grubhub’s subscription program offering members free delivery. Restaurants may receive more frequent orders from subscribers, but Grubhub can pass a portion of the delivery subsidy cost as an additional payout deduction. Track Grubhub+ orders separately to determine whether the added volume is profitable after accounting for subsidy charges.
Download your Grubhub payout statement and compare each order’s deductions against your contracted rates. For a line-by-line explanation of every charge on your statement, see our guide on how to read a Grubhub statement. Verify marketplace commissions and delivery fees match your agreement. Review all refund deductions, marketing charges, and error adjustments. Calculate your effective rate per payout period and track it over time. A reconciliation tool automates this process and flags any discrepancies instantly.
Most delivery platforms charge restaurants 15–30% base commission plus 2.5% payment processing. When you add marketing fees, refund deductions, promotional charges, and platform-specific adjustments, the effective rate is typically 28–38% of gross order revenue. Grubhub’s split model makes this harder to see because the marketplace fee and delivery fee are listed separately.
Export your Grubhub payout statement, divide total deductions by gross order revenue for each period, and compare the result to your contracted marketplace + delivery rate. If the effective rate exceeds your contract by more than 3–4 percentage points, investigate the individual fee categories to find where the gap is coming from.