Travel

Currency Exchange Fee Calculator (Hidden Markup)

Enter the amount, the mid-market rate and the rate you are offered to find the hidden markup and total cost.

Your numbers

The real rate shown by a market data source, without any margin
%

Your results

You receive (foreign currency)
You receive (foreign currency)
—
At the mid-market rate with no fees
—
Hidden rate markup
—
Total cost of the exchange (in the currency you pay)
—
Effective cost
—

Currency Exchange Fee Calculator (Hidden Markup) by TheCalcTools

How the Currency Exchange Fee Calculator (Hidden Markup) works

The mid-market rate is the midpoint between buy and sell prices on the wholesale market. Banks, airports and many card networks give a lower rate and keep the difference: that margin is a hidden fee.

The total cost adds the markup to any fixed and percentage fees, expressed in the currency you pay. Compare providers by the amount the recipient actually gets.

The formula

Received = (amount − fixed fee) × (1 − % fee) × offered rateCost = (amount × mid rate − received) ÷ mid rate

Worked example

Using the default values shown in the calculator:

Amount you send or exchange1000
Mid-market rate (1 unit = ? foreign units)278.5
Rate you are offered272
Fixed fee (in the currency you pay)5
Percentage fee0 %
  1. Exchanging 1,000 at 272 when the mid-market rate is 278.5, with a fee of 5: you receive 270,640.00.
  2. The markup is 2.33% and the exchange costs 28.22 in total, or 2.82%.

Result:

You receive (foreign currency)270,640.00
At the mid-market rate with no fees278,500.00
Hidden rate markup2.33%
Total cost of the exchange (in the currency you pay)28.22
Effective cost2.82%

Frequently asked questions

Where do I find the mid-market rate?

Financial data sites and many search engines show it. It moves through the day, so compare at the same time.

Is 'zero commission' really free?

Not always. A provider with no fee can still give a poor rate; the markup is the fee.

Sources and further reading

More in Travel · All calculators

This calculator gives estimates for information only. Check important results independently before you rely on them. See our disclaimer.