How the calculator works
Every transfer has two costs. The fee is the one you see. The markup is hidden: the provider converts your money at a worse rate than the real, mid-market rate and keeps the difference.
The calculator works out what your recipient would have received if you had paid nothing at all: your whole amount converted at the mid-market rate. The gap between that and what actually arrived, converted back into your currency, is your true cost. Take away the visible fee and what's left is the markup.
Worked example
You send $500 to Nigeria, pay a $4.99 fee, and your family receives ₦735,000. The mid-market rate is ₦1,500 per dollar.
- At the mid-market rate, $500 is worth ₦750,000.
- ₦735,000 arrived, so ₦15,000 (about $10.00) went missing.
- That $10.00 includes the $4.99 fee, so about $5.01 was hidden in the exchange rate.
- Total cost: 2.0% of what you paid.
What is a good total cost?
| Total cost | Verdict | What it usually means |
|---|---|---|
| Under 1% | Excellent | Mid-market rate with a small, clear fee. Typical of the cheapest online providers on popular routes. |
| 1% to 3% | Fair | Reasonable, but worth comparing two or three providers for regular transfers. |
| Above 3% | Expensive | Above the United Nations 3% target for remittance costs. Common with banks and cash pick-up services. |
Five ways to pay less
- Compare the amount received, not the fee. A "zero fee" transfer with a 4% markup costs more than a $3 fee at the mid-market rate.
- Avoid converting at your bank. Bank wires often carry the widest markups.
- Send larger amounts less often when the fee is fixed.
- Watch out for "send in your own currency" offers at ATMs and card terminals abroad. Paying in the local currency is almost always cheaper.
- Recheck every few months. Providers change pricing by route and amount.
Frequently asked questions
What is an exchange-rate markup?
It is the gap between the mid-market exchange rate (the midpoint between what banks pay to buy and sell a currency) and the rate a provider actually gives you. Providers often advertise "zero fees" and earn their money through this gap instead.
What counts as a good total cost for a money transfer?
Under 1% is excellent and typical of the cheapest online providers on popular routes. 1–3% is fair. Above 3% is expensive: the United Nations target for remittance costs is 3%, and the global average has stayed well above that, at roughly 6%.
Where do I find the mid-market rate?
Use the "Use today’s rate" button, or search the currency pair on Google, XE or Reuters. Check it at the same time you get a quote, because rates move throughout the day.
Does this calculator work for card payments abroad?
Yes. Enter what your card was charged in your own currency as the amount you paid, any foreign transaction fee as the fee, and the amount in the foreign currency as what was received.