Australian Currency Transfer & True Cost Calculator
Check current rate on Google (e.g., "1 AUD to USD")
Avg big 4 bank spread is ~3-5%
True Market Value (No Fees):–
Exchange Rate You Get (After Margin):–
Total "Hidden" Cost (Spread + Fee):–
Amount Recipient Gets:–
function calculateExchange() {
// Get Inputs
var audAmount = parseFloat(document.getElementById('audAmount').value);
var marketRate = parseFloat(document.getElementById('marketRate').value);
var bankMargin = parseFloat(document.getElementById('bankMargin').value);
var fixedFee = parseFloat(document.getElementById('fixedFee').value);
// Validation
if (isNaN(audAmount) || isNaN(marketRate) || isNaN(bankMargin) || isNaN(fixedFee)) {
alert("Please enter valid numbers in all fields.");
return;
}
if (audAmount <= 0 || marketRate <= 0) {
alert("Amount and Exchange Rate must be greater than zero.");
return;
}
// Logic
// 1. Calculate amount remaining after fixed fees
var amountAfterFee = audAmount – fixedFee;
// 2. Calculate the "Client Rate" (Market rate minus the bank's percentage margin)
// Margin is usually taken as a percentage OFF the rate.
var marginDecimal = bankMargin / 100;
var clientRate = marketRate * (1 – marginDecimal);
// 3. Calculate Final Amount received in Foreign Currency
var finalForeignAmount = amountAfterFee * clientRate;
if (finalForeignAmount < 0) finalForeignAmount = 0;
// 4. Calculate what it SHOULD have been without fees/margin (True Value)
var trueValue = audAmount * marketRate;
// 5. Calculate Total Loss (AUD equivalent approximately, or Foreign Currency Difference)
// Let's show the difference in Foreign Currency first
var foreignCurrencyLoss = trueValue – finalForeignAmount;
// Let's also calculate the Effective Exchange Rate (Total Received / Total Sent)
var effectiveRate = finalForeignAmount / audAmount;
// Display Results
document.getElementById('results').style.display = 'block';
document.getElementById('resTrueValue').innerHTML = trueValue.toFixed(2) + " (Target Currency)";
document.getElementById('resClientRate').innerHTML = clientRate.toFixed(4) + " (Effective Rate: " + effectiveRate.toFixed(4) + ")";
// Total cost calculation in AUD terms roughly:
var totalCostAUD = fixedFee + (audAmount * marginDecimal);
// Or simply display the foreign currency lost
document.getElementById('resTotalLoss').innerHTML = foreignCurrencyLoss.toFixed(2) + " (Target Currency Lost)";
document.getElementById('resFinalAmount').innerHTML = finalForeignAmount.toFixed(2) + " (Target Currency)";
}
Understanding Exchange Rates in Australia
Transferring money overseas from Australia involves more than just looking up the current exchange rate on Google. Whether you are sending AUD to USD, GBP, EUR, or NZD, the figure you see on news websites is known as the Mid-Market Rate (or Interbank Rate). This is the "real" price of the currency, but it is rarely the price a consumer pays.
How Banks Calculate Your Exchange Rate
When you use a major Australian bank to transfer money internationally, they typically apply two types of costs:
Fixed Transfer Fee: A set fee (e.g., $10 to $30 AUD) charged per transaction.
The Exchange Rate Margin (Spread): This is a "hidden" fee. Banks adjust the Mid-Market Rate in their favor. For example, if one AUD buys 0.65 USD, the bank might only offer you 0.62 USD. The difference (roughly 3% to 5%) is the margin they keep as profit.
Using the Calculator
This Exchange Rates Calculator Australia helps you uncover the true cost of your transfer. By inputting the current market rate found on Google and the estimated margin (Australian banks typically charge between 3% and 5%), you can see exactly how much foreign currency your recipient will actually receive versus what the "true" value of your money is.
Tips for Better Exchange Rates
Compare Providers: specialized FX transfer services often charge lower margins (0.5% – 1%) compared to traditional banks.
Watch the Market: The AUD fluctuates based on commodity prices and RBA interest rate decisions. Sending money when the AUD spikes can save you hundreds.
Send Larger Amounts: Fixed fees eat into small transfers. Sending a larger lump sum often results in a better effective exchange rate.
Why the "Effective Rate" Matters
The effective rate is the only number that truly matters. It is calculated by taking the final amount received by the beneficiary and dividing it by the total AUD you spent. If a provider offers "Zero Commission" but has a terrible exchange rate, your effective rate will be low, and you will lose money. Always compare the final amount received, not just the advertised fees.