Money transfer cost calculator: exchange rate markup and fees
Compare up to 3 ways to send money abroad or change currency. See the transfer fees, the exchange rate markup and fees on arrival. See it all in your currency, per transfer and per year.
A transfer sold as “free” can still be the most expensive one. Often most of the cost hides in the exchange rate. That is the gap between the rate you get and the mid-market rate. Enter what each bank or provider shows before you confirm.
Your numbers
That is 0.90% of what you pay. The receiver gets money worth USD 991.02 at the mid-market rate. Route A costs USD 31.02 more per transfer. That is USD 372 over 12 transfers a year.
| Measure | A | B |
|---|---|---|
| Transfer fees | USD 0.00 | USD 4.00 |
| Rate markup | USD 30.00 | USD 4.98 |
| Fee on arrival | USD 10.00 | USD 0.00 |
| Total cost | USD 40.00 | USD 8.98 |
| % of amount | 4.00% | 0.90% |
| Arrives (at mid-market rate) | USD 960.00 | USD 991.02 |
How the calculation works
Converted = A − flat fee − A × fee %; markup cost = converted × markup %; arrives = converted − markup cost − fee on arrival; cost = A − arrivesA is the amount you pay, fees included. The markup is how much worse your rate is than the mid-market rate. The mid-market rate is the middle point between the buy and sell price. Reference rates are based on it. Everything is counted in your currency. So the result does not need a live exchange rate.
Step by step
- Transfer fees = flat fee + amount × % fee. The rest gets converted.
- Markup: compare your offered rate with the mid-market rate at the same moment. Markup % = (mid-market rate − offered rate) ÷ mid-market rate × 100.
- Markup cost = converted amount × markup %. Does the receiving bank take a fee? Enter it as an amount in your currency.
- Arrives = converted − markup cost − fee on arrival. Total cost = amount paid − arrives. Cost % = total cost ÷ amount paid.
- Per year: the gap between the cheapest and the most expensive route × transfers per year.
Limits
Rates change during the day. So compare quotes from the same moment. Some routes have fees from banks in the middle or from the receiving bank. You only see those afterwards. Cash pickup, paying by card and faster delivery can change the price. Rules on what providers must show you differ by country. Examples are the EU cross-border payments regulation and the US remittance transfer rule. The starting numbers are made-up examples, not quotes from any provider. Illustration, not advice, an offer or a recommendation.
Questions, answered.
What is the mid-market rate?
The middle point between the buy and sell price of 2 currencies at one moment. Reference rates from central banks and market data services are based on it. The rate you get is usually worse. The difference is the markup.
Why can a no-fee transfer cost more?
The provider can earn more through a worse exchange rate. A 3% markup on 1,000 costs 30. That is more than many flat fees.
Which fees show up only on arrival?
Banks in the middle of a SWIFT chain may take their own fees. So may some receiving banks. SWIFT is the network banks use to send money abroad. Ask the person you paid what arrived. Enter the difference.
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