Exchange Rate Comparison Calculator
Provider A
Provider B
Provider A
Net Amount Converted:
Effective Rate (after fees):
Recipient Gets:
Provider B
Net Amount Converted:
Effective Rate (after fees):
Recipient Gets:
How to Compare Money Transfer Services
Sending money internationally can be confusing due to the varying fee structures and exchange rates offered by banks and specialist transfer services. The Exchange Rate Comparison Calculator helps you cut through the marketing noise to find out exactly how much money your recipient will receive.
Understanding the True Cost of a Transfer
When comparing international money transfers, there are two main cost components you must consider:
- Upfront Transfer Fee: This is the fixed charge or percentage fee the provider charges to initiate the transaction. Some providers claim "zero fees" but hide their profit elsewhere.
- Exchange Rate Margin: This is the difference between the "mid-market rate" (the real rate banks use to trade with each other) and the rate the provider offers you. A lower exchange rate means your recipient gets less money, which acts as a hidden fee.
Pro Tip: Do not just look at the fee. A provider with a $0 fee might offer a significantly worse exchange rate than a provider charging $5, resulting in less money arriving at the destination. Always compare the final amount received.
How This Calculator Works
This tool uses a standard comparison logic to determine the "Effective Exchange Rate." Here is the math behind the comparison:
- Deduct Fees: First, we subtract the transfer fee from the total amount you are sending to determine the "Net Amount" available for conversion.
Formula: Net Amount = Total Send Amount – Transfer Fee - Apply Exchange Rate: We multiply the Net Amount by the provider's offered exchange rate.
Formula: Recipient Receives = Net Amount × Exchange Rate - Comparison: We compare the final results from Provider A and Provider B to calculate the difference.
Example Scenario
Imagine you want to send 1,000 Units of your currency.
- Provider A charges a 10.00 fee but offers a high rate of 1.50.
Calculation: (1000 – 10) × 1.50 = 1,485.00 Received. - Provider B charges 0.00 fees but offers a lower rate of 1.45.
Calculation: 1000 × 1.45 = 1,450.00 Received.
In this example, despite the upfront fee, Provider A is the better option because the recipient receives 35.00 more units.