The real exchange rate found on Google or Reuters.
The exchange rate your bank or broker is giving you.
The total amount of currency you are sending.
Exchange Rate Margin (Markup):0.00%
Hidden Fee (Currency Loss):0.00
Recipient Gets (Offered Rate):0.00
Recipient Would Get (Mid-Market):0.00
function calculateMargin() {
var midRate = parseFloat(document.getElementById('midMarketRate').value);
var offeredRate = parseFloat(document.getElementById('offeredRate').value);
var amount = parseFloat(document.getElementById('transferAmount').value);
var resultsDiv = document.getElementById('results');
if (isNaN(midRate) || isNaN(offeredRate) || isNaN(amount) || midRate <= 0 || offeredRate Offered (Customer gets less).
// If Customer is buying (Reverse), usually Offered > Mid (Customer pays more).
// We calculate absolute difference to determine the spread magnitude.
var diff = Math.abs(midRate – offeredRate);
var marginPercentage = (diff / midRate) * 100;
// Calculate totals
var totalMid = amount * midRate;
var totalOffered = amount * offeredRate;
// The hidden cost is the difference in the resulting amount
// If Offered Mid (Unlikely for standard "sell", but valid for "buy"): Diff is still the cost value relative to the base
var hiddenCost = Math.abs(totalMid – totalOffered);
// Display values
document.getElementById('marginPercent').innerHTML = marginPercentage.toFixed(2) + "%";
document.getElementById('currencyLoss').innerHTML = hiddenCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('recipientGets').innerHTML = totalOffered.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('recipientIdeallyGets').innerHTML = totalMid.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
resultsDiv.style.display = 'block';
}
Understanding the Exchange Rate Margin Calculator
When sending money internationally, the "fee" advertised by a bank or transfer provider is often only a small part of the total cost. The largest cost usually hides within the exchange rate itself. This is known as the exchange rate margin or spread.
Our Exchange Rate Margin Calculator helps you uncover these hidden fees by comparing the rate you are being offered against the real mid-market rate.
What is the Mid-Market Rate?
The mid-market rate (also known as the interbank rate) is the midpoint between the buy and sell prices of two currencies. It is the "real" rate you see on Google, Reuters, or XE. Banks trade with each other at this rate, but they rarely offer it to retail customers.
How Banks Hide Fees in the Exchange Rate
Instead of charging a transparent upfront fee, many providers add a markup to the exchange rate. For example, if the mid-market rate for USD to EUR is 0.92, a bank might offer you a rate of 0.89.
While the difference seems small (0.03), it adds up significantly on larger transfers. On a $10,000 transfer, a 3% margin means you effectively lose $300 without realizing it.
How to Use This Calculator
Find the Mid-Market Rate: Search for your currency pair on Google (e.g., "USD to GBP") to find the current interbank rate. Enter this in the first field.
Enter the Offered Rate: Log in to your bank or transfer provider and see what exchange rate they are quoting you for the transfer. Enter this in the second field.
Enter Transfer Amount: Input the amount of source currency you intend to send.
Calculate: Click the button to see the exact percentage markup and the total amount of money you are losing to this hidden spread.
Why is a Zero-Commission Transfer Not Always Cheap?
Marketing campaigns often claim "0% Commission" or "No Fees." This usually refers only to the fixed transaction fee (e.g., the wire fee). If the provider inflates the exchange rate by 4-5%, you are paying a much higher cost than you would with a provider that charges a small fixed fee but offers the real mid-market rate.
How to Reduce Exchange Rate Costs
Compare Providers: Don't settle for your primary bank. Specialized FX brokers often offer tighter spreads (closer to the mid-market rate).
Use Multi-Currency Accounts: Services that allow you to hold and exchange currencies at mid-market rates can save significant amounts on recurring payments.
Check the Margin Percentage: Always calculate the margin before confirming a transfer. A margin below 0.5% is generally considered excellent, while anything above 2-3% is expensive.