Calculate actual conversion totals including bank margins and fees.
Conversion Summary
Foreign Amount Received:
0.00
Effective Exchange Rate:
0.00
Total Cost of Fees/Margin:
0.00
Net Efficiency:
0%
Understanding International Rates and Markups
When sending money abroad, the "international rate" you see on news sites or Google is the mid-market rate. However, consumers rarely get this rate. Banks and transfer services typically add a "markup" or "margin" to the rate, which acts as a hidden fee.
How the Calculation Works
This calculator determines the actual value of your international transfer by applying two primary costs:
Fixed Fees: Upfront costs charged by the institution to process the wire or transfer.
The Spread (Margin): The percentage difference between the real market rate and the rate offered to you.
Example Calculation
If you are sending 1,000 units of currency with a mid-market rate of 1.20, but the bank applies a 3% margin and a 10 unit fee:
The 10 unit fee is subtracted from your 1,000 (Remaining: 990).
The rate is adjusted: 1.20 – 3% = 1.164.
Final amount: 990 * 1.164 = 1,152.36 units of foreign currency.
The Effective Rate becomes 1.152, which is significantly lower than the 1.20 mid-market rate.
Tips for Better International Rates
To maximize the amount of foreign currency received, always look for providers that offer "Transparent Pricing." Large retail banks often charge margins between 3% and 5%, while specialized international transfer companies may charge as little as 0.5%. Use this calculator to compare the "Effective Rate" of different providers rather than just looking at the advertised upfront fee.
function calculateInternationalRate() {
var sendAmount = parseFloat(document.getElementById('sendAmount').value);
var marketRate = parseFloat(document.getElementById('marketRate').value);
var marginPercent = parseFloat(document.getElementById('marginPercent').value) || 0;
var fixedFee = parseFloat(document.getElementById('fixedFee').value) || 0;
if (isNaN(sendAmount) || isNaN(marketRate) || sendAmount <= 0 || marketRate <= 0) {
alert('Please enter valid positive numbers for Amount and Market Rate.');
return;
}
// 1. Subtract fixed fee from base amount
var amountAfterFee = sendAmount – fixedFee;
if (amountAfterFee <= 0) {
alert('Fixed fees exceed the transfer amount.');
return;
}
// 2. Calculate the rate after bank margin
// Bank margin reduces the value of the exchange rate for the user
var appliedRate = marketRate * (1 – (marginPercent / 100));
// 3. Calculate final foreign currency received
var foreignReceived = amountAfterFee * appliedRate;
// 4. Calculate effective exchange rate (Total Foreign / Original Base)
var effectiveRate = foreignReceived / sendAmount;
// 5. Calculate total cost (Market value vs Actual received)
var marketValue = sendAmount * marketRate;
var totalCost = marketValue – foreignReceived;
// 6. Calculate efficiency percentage
var efficiency = (foreignReceived / marketValue) * 100;
// Display Results
document.getElementById('resultsArea').style.display = 'block';
document.getElementById('finalReceived').innerHTML = foreignReceived.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('effectiveRate').innerHTML = effectiveRate.toFixed(4);
document.getElementById('totalCost').innerHTML = totalCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('efficiency').innerHTML = efficiency.toFixed(2) + '%';
}