Currency Exchange Rate Calculator
Calculate how much foreign currency you will receive after fees.
Standard bank margins range from 1% to 5%.
Calculation Results
Gross Conversion:
0.00
Service Fee Amount:
0.00
Net Amount Received:
0.00
How to Calculate Exchange Rate Manually
Calculating a currency exchange involves more than just multiplying two numbers. To get an accurate figure, you must account for the mid-market rate and the markup applied by the financial institution.
The Basic Formula
Total Received = (Amount × Exchange Rate) × (1 – Fee Percentage)
Understanding the Components
- Base Amount: The quantity of the initial currency you hold.
- Exchange Rate: The value of one currency in relation to another (e.g., 1 USD = 0.92 EUR).
- Spread/Fee: Banks rarely give you the "real" rate seen on Google. They add a percentage (usually 2-4%) to the rate to make a profit.
Step-by-Step Example
Imagine you want to convert 500 USD to EUR. The current market rate is 0.90, but your bank charges a 3% conversion fee.
- Multiply by rate: 500 × 0.90 = 450 EUR.
- Calculate fee: 450 × 0.03 = 13.50 EUR.
- Subtract fee: 450 – 13.50 = 436.50 EUR.
In this scenario, you would actually receive 436.50 EUR after the bank takes its cut.