US Exchange Rate Estimator (CAD/USD)
Convert CAD to USD (Buy USD)
Convert USD to CAD (Sell USD)
Major banks (like RBC) typically charge 2-3% above market rate.
Mid-Market Rate:
–
Estimated Bank Client Rate:
–
Spread Cost (Hidden Fee):
–
You Receive Approximately
–
*This calculator provides estimates based on typical bank spreads. Actual rates at RBC or other financial institutions change in real-time and may differ based on account type and transaction volume.
Understanding US Exchange Rates and Bank Spreads
When searching for the US exchange rate calculator RBC, it is crucial to understand that the rate you see on Google or financial news sites is known as the "mid-market rate." This is the midpoint between the buy and sell prices of two currencies. However, when you exchange money at a major Canadian bank, you rarely get this exact rate.
How Bank Exchange Rates Work
Financial institutions, including RBC (Royal Bank of Canada), TD, and others, generate revenue on currency exchange by applying a "spread." This is essentially a margin added to the mid-market rate.
- Buying USD (CAD to USD): If the market rate is 1.36 CAD for 1 USD, the bank might charge you 1.39 CAD. You pay more CAD to get the same amount of USD.
- Selling USD (USD to CAD): If the market rate is 1.36 CAD for 1 USD, the bank might only give you 1.33 CAD. You receive less CAD for your USD.
Non-Cash vs. Cash Rates
Most banks offer different rates depending on the transaction type:
- Non-Cash Rates: These apply to electronic transfers, wire transfers, or moving money between USD and CAD accounts within the bank. These rates are generally more favorable (lower spread).
- Cash Rates: If you are buying physical banknotes (bills) at a branch, the spread is typically wider (higher cost) to account for the logistics of handling physical currency.
How to Calculate Your Real Cost
To calculate the true cost of your exchange, compare the bank's quoted rate against the mid-market rate. The difference multiplied by your total transaction amount represents the hidden fee you are paying for the service. Our calculator above helps simulate this by allowing you to adjust the "Bank Spread Margin" (typically between 2.0% and 3.5% for standard retail clients).
Note: This tool is for estimation purposes only and is not affiliated with the Royal Bank of Canada. For exact live rates, please log in to your online banking portal.