function calculateExchangeMarkup() {
// 1. Get input values
var midRateInput = document.getElementById("midMarketRate").value;
var quotedRateInput = document.getElementById("quotedRate").value;
var amountInput = document.getElementById("transferAmount").value;
// 2. Parse values to floats
var midRate = parseFloat(midRateInput);
var quotedRate = parseFloat(quotedRateInput);
var amount = parseFloat(amountInput);
// 3. Validation
if (isNaN(midRate) || midRate <= 0) {
alert("Please enter a valid Mid-Market Rate.");
return;
}
if (isNaN(quotedRate) || quotedRate <= 0) {
alert("Please enter a valid Quoted Rate.");
return;
}
if (isNaN(amount) || amount < 0) {
alert("Please enter a valid Transfer Amount.");
return;
}
// 4. Calculations
// Calculate the difference between the real rate and the bank rate
var spread = midRate – quotedRate;
// Calculate the percentage markup relative to the mid-market rate
// Formula: ((Real Rate – Quoted Rate) / Real Rate) * 100
var markupPercent = (spread / midRate) * 100;
// Calculate actual money received at the quoted rate
var received = amount * quotedRate;
// Calculate what should have been received at the real rate
var idealReceived = amount * midRate;
// Calculate the hidden cost in the target currency
var lost = idealReceived – received;
// 5. Update UI
document.getElementById("results").style.display = "block";
// Formatting numbers
document.getElementById("markupPercentage").innerHTML = markupPercent.toFixed(4) + "%";
document.getElementById("actualReceived").innerHTML = received.toFixed(2);
// If the spread is negative (user got a better rate than mid-market, unlikely but possible), handle display
if (lost < 0) {
document.getElementById("amountLost").innerHTML = "+" + Math.abs(lost).toFixed(2) + " (Gain)";
document.getElementById("amountLost").style.color = "green";
} else {
document.getElementById("amountLost").innerHTML = lost.toFixed(2) + " (Target Currency)";
document.getElementById("amountLost").style.color = "#dc3545";
}
document.getElementById("rateSpread").innerHTML = spread.toFixed(5);
}
Understanding the Exchange Rate Percentage Calculator
When transferring money internationally, the "Exchange Rate Percentage" (often called the exchange rate margin, spread, or markup) is the most critical metric to understand. It represents the difference between the real market exchange rate and the rate a bank or provider offers you.
Why this matters: Most banks advertise "0% Commission" or "Free Transfers," but they hide their profit in the exchange rate percentage. This calculator reveals exactly how much value you are losing in that spread.
How to Use This Calculator
Mid-Market Rate: Find the current "real" exchange rate on Google or XE. This is the midpoint between buy and sell prices in the open market.
Provider/Bank Quoted Rate: Enter the rate your bank or transfer service is offering you for the conversion.
Transfer Amount: Enter the amount of source currency you intend to send.
The Exchange Rate Markup Formula
To calculate the percentage markup manually, you can use the following formula which is implemented in the tool above:
Let's say you want to convert US Dollars (USD) to Euros (EUR).
Mid-Market Rate: 0.9200 (The real rate)
Bank Rate: 0.8900 (What the bank gives you)
Difference: 0.0300
Using the formula: (0.0300 / 0.9200) × 100 = 3.26%.
This means the bank is charging you a 3.26% hidden fee on your transfer. If you were sending $10,000, you would lose roughly €300 just in the exchange rate difference, regardless of any upfront wire fees.
What is a "Good" Exchange Rate Percentage?
While the mid-market rate fluctuates constantly, the percentage markup usually remains fixed per provider. Here is a general guide to evaluating your rate:
0.0% – 0.5%: Excellent (Usually specialized FX brokers or multi-currency accounts).
0.5% – 1.5%: Good (Competitive online transfer services).
1.5% – 3.0%: Average (Standard consumer services).
3.0% – 5.0%+: Poor (Typical major banks and airport kiosks).
Difference Between Spread and Commission
It is vital to distinguish between fixed fees and percentage markups. A fixed commission (e.g., $15 per wire) is transparent. The exchange rate percentage is opaque. On large transfers, a high exchange rate markup is significantly more expensive than a flat wire fee.