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MasterMath

Currency Exchange Fee Calculator

How much you actually receive when changing currency and what the operation costs you, counting the spread against the mid-market rate, which is where the unadvertised cost nearly always sits.

Currency and number format for

You receive

—

You receive—
Total cost of the exchange—
Of the amount—
Declared fee—
Hidden cost in the rate—
Spread against the mid rate—

How this was worked out

    The formula

    You receive = (amount − fee) × rate applied

    Where it comes from

    The mid-market rate is the midpoint between what is paid and what is charged for a currency, and it is the one that comes up when you look the rate up online. No exchange gives you that rate: they give you a worse one, and that gap is their margin. That is why a "no commission" offer can cost more than one with a one per cent fee at the mid rate: the fee is visible and the spread is not.

    How to work it out by hand

    1. Look up the mid-market rate for the currency pair
    2. Note the rate you are actually offered
    3. Subtract the fee from the amount and multiply by the offered rate
    4. Compare with what you would have received at the mid rate with no fees

    What is worth knowing

    A practical rule when comparing offers: always add fee and spread together, because whoever charges no commission usually more than makes up for it in the rate. With cards there are two further layers not covered here: the foreign transaction fee your bank applies, and the dynamic conversion some ATMs and card terminals offer by asking whether you want to pay in your own currency. Always say no to that second one: it is the worst rate of all.

    Frequently asked questions

    What is the mid-market rate?

    The midpoint between buy and sell, the one that comes up when you look the rate up online. Nobody gives it to you: it is the benchmark.

    Is "no commission" cheaper?

    Not necessarily. It usually means the margin is in the rate, which is the part you cannot see. Always compare the total.

    What is dynamic currency conversion?

    When a foreign ATM or terminal offers to charge you in your own currency. Always decline: it applies the worst rate available.

    Does it count my card's foreign fee?

    No. If your bank charges a percentage for operating in another currency, add it in the fee field.

    How do I compare two offers?

    By what you end up receiving, not by the fee. It is the only figure that captures every cost at once.