function calculateWiseTransfer() {
// 1. Get input values matching IDs exactly
var sendAmountInput = document.getElementById('sendAmount').value;
var midMarketRateInput = document.getElementById('midMarketRate').value;
var variableFeePercentInput = document.getElementById('variableFeePercent').value;
var fixedFeeInput = document.getElementById('fixedFee').value;
// 2. Parse values to floats
var sendAmount = parseFloat(sendAmountInput);
var midMarketRate = parseFloat(midMarketRateInput);
var variableFeePercent = parseFloat(variableFeePercentInput);
var fixedFee = parseFloat(fixedFeeInput);
var resultDiv = document.getElementById('wiseResult');
// 3. Validate inputs (handle NaN and negative numbers)
if (isNaN(sendAmount) || sendAmount <= 0) {
resultDiv.style.display = 'block';
resultDiv.innerHTML = 'Please enter a valid positive Amount to Send.';
return;
}
if (isNaN(midMarketRate) || midMarketRate <= 0) {
resultDiv.style.display = 'block';
resultDiv.innerHTML = 'Please enter a valid positive Mid-Market Exchange Rate.';
return;
}
if (isNaN(variableFeePercent) || variableFeePercent < 0) {
resultDiv.style.display = 'block';
resultDiv.innerHTML = 'Please enter a valid Variable Fee Percentage (0 or higher).';
return;
}
if (isNaN(fixedFee) || fixedFee = sendAmount) {
resultDiv.style.display = 'block';
resultDiv.innerHTML = 'Calculation Error: Total fees exceed or equal the amount sent. No money can be converted.';
return;
}
// The amount remaining after fees is what gets converted
var amountToConvert = sendAmount – totalFees;
// Final amount received in target currency
var finalReceivedAmount = amountToConvert * midMarketRate;
// Calculate the "Effective Rate" (The real rate after fees are considered)
var effectiveRate = finalReceivedAmount / sendAmount;
// 5. Output Results
resultDiv.style.display = 'block';
resultDiv.innerHTML =
'
Transfer Breakdown
' +
'
Initial Send Amount:' + sendAmount.toFixed(2) + ' Source Units
' +
'
Total Fees Deducted:– ' + totalFees.toFixed(2) + ' Source Units
' +
'
Amount Converted:' + amountToConvert.toFixed(2) + ' Source Units
Final Amount Received:' + finalReceivedAmount.toFixed(2) + ' Target Units
' +
'The "Effective Wise Rate": After fees, your actual realized exchange rate is 1 Source Unit = ' + effectiveRate.toFixed(5) + ' Target Units.';
}
Understanding the "Wise Rate" in International Transfers
When sending money internationally, the exchange 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" rates on global currency markets and is considered the fairest exchange rate.
However, many traditional banks and currency transfer services do not offer this rate to consumers. Instead, they often add a hidden markup to the rate they offer you. They might advertise "zero fees," but they profit by giving you a worse exchange rate than the real mid-market rate.
How the Wise Rate Model Works
The "Wise rate" approach (popularized by modern fintech companies) centers on transparency. Instead of hiding costs in rate markups, they use the real mid-market rate for conversion but charge a transparent upfront fee. This fee usually consists of a small fixed cost plus a variable percentage of the transfer amount.
Why Calculation Matters
To truly understand how much of your money will arrive in the target currency, you must calculate the effective rate. This calculator helps you determine the final amount received by subtracting the transparent fees *before* conversion.
By inputting the amount you wish to send, the current mid-market rate, and the stated fees, you can see exactly how much of your source currency is actually converted and what the final recipient will get. Often, paying a transparent fee on the mid-market rate results in a higher final received amount compared to "no-fee" services that use inflated exchange rates.