How to use the currency exchange markup calculator
- Enter the mid-market rate from a source you trust at the time you exchange. It is the units you receive for 1 unit you send.
- Enter the rate you were offered in the same direction.
- Optionally enter the amount you send and any flat fee to see what the exchange costs in both currencies.
- Read the markup and, if you entered an amount, how much you receive and how much the markup and fee cost.
Formula
Markup = (mid-market rate - offered rate) / mid-market rate x 100%
Received at mid-market = amount sent x mid-market rate
Received at the offered rate = (amount sent - flat fee) x offered rate
Lost = received at mid-market - received at the offered rate
The loss in the sending currency is the loss divided by the mid-market rate. Both rates must be quoted the same way, as units received per 1 unit sent.
A 1.10 mid-market rate and a 1.067 offer
Suppose the mid-market rate is 1.10 euros for each dollar and you are offered 1.067. The markup is (1.10 - 1.067) / 1.10 = 3%. Sending 1,000 USD would give 1,100.00 EUR at the mid-market rate but 1,067.00 EUR at the offered rate, a loss of 33.00 EUR, which is 30.00 USD.
Add a flat fee of 10 USD and the amount converted falls to 990, so you receive 1,056.33 EUR. The loss is 43.67 EUR, or 39.70 USD, which is 3.97% of the mid-market value. If an offer were better than the mid-market rate, such as 1.12, the tool shows a negative markup of 1.82%, which usually means the rates were entered in opposite directions.
Why compare with the mid-market rate
Providers often make money in the exchange rate itself instead of a visible fee. A clear fee line can sit next to a rate that is quietly worse than the market rate. Measuring the gap as a percent lets you compare a bank, a card, an airport kiosk and a transfer service on the same footing.
The mid-market rate is the midpoint between buy and sell prices on the market. It is not a rate any customer can always get, but it is a useful yardstick.
What the tool does not do
This tool does not fetch live rates. You enter both numbers yourself, so the result is only as accurate as the rates you use and when you read them. Rates move through the day and can differ between sources.
Fees charged on the receiving side, taxes, cash pickup charges and card network fees are not included. To convert units, try the unit converter, to size a trip use the trip budget planner, and for processor charges see the payment processing fee calculator.
Assumptions and limits
- Both rates are written as units of the currency you receive per 1 unit of the currency you send.
- The flat fee is in the currency you send and is deducted before conversion.
- The mid-market rate is whatever number you enter from your own source.
- No live rates, taxes or receiving-side charges are included.
Frequently asked questions
How do I calculate the markup on an exchange rate?
Subtract the offered rate from the mid-market rate, divide by the mid-market rate and multiply by 100. A mid rate of 1.10 and an offer of 1.067 is a 3% markup.
Where do I find the mid-market rate?
Use a rate from a source you trust at the same moment as the offer, such as a financial site or your bank's published market rate. The tool does not supply one.
Why is my markup negative?
A negative markup means the offered rate is better than the mid-market rate you entered. Most often the two rates were entered in opposite directions, so check that both are units received per 1 unit sent.
Does the flat fee change the markup percent?
No. The markup percent compares the rates only. The fee is added in the total cost line, which shows the whole loss as a share of the mid-market value.