PayPal USD to CAD Conversion Calculator
Estimate how many Canadian Dollars (CAD) you will receive after PayPal's currency conversion fees.
Gross Amount:
PayPal Currency Spread Cost:
Effective Exchange Rate:
Total Received (CAD):
How PayPal Calculates USD to CAD Exchange Rates
When you transfer money from USD to CAD using PayPal, the platform does not use the "mid-market" or "interbank" rate you see on Google or XE.com. Instead, PayPal applies a currency conversion spread, which is essentially a retail markup on the exchange rate.
The standard currency conversion fee for most PayPal transactions involving USD to CAD is 3.0% to 4.5% above the base exchange rate. This means if the market rate is 1.36, PayPal might offer you a rate closer to 1.31 or 1.32.
The Conversion Formula
To calculate the CAD you will receive, use this logic:
- Step 1: Start with the Mid-Market Rate (e.g., 1.36).
- Step 2: Subtract the PayPal Spread (e.g., 4% of 1.36 is 0.0544).
- Step 3: The adjusted rate becomes 1.3056.
- Step 4: Multiply your USD amount by the adjusted rate.
Example Calculation
If you are converting $1,000 USD to CAD and the market rate is 1.35 with a 4% PayPal fee:
1. Fee Adjustment: 1.35 * 0.04 = 0.054
2. PayPal Rate: 1.35 – 0.054 = 1.296
3. Final CAD: $1,000 * 1.296 = $1,296.00 CAD
Tips to Save on USD to CAD Transfers
If you are a business owner or freelancer receiving USD, you can often save money by:
- Opening a USD Bank Account in Canada: Some Canadian banks allow you to withdraw USD directly from PayPal, avoiding their conversion fee (though a withdrawal fee may still apply).
- Using Third-Party Services: Platforms like Wise or specialized currency brokers often provide rates closer to the mid-market rate than PayPal.
- Checking Your Account Type: Business accounts may have different fee structures compared to personal accounts depending on the transaction volume.