Why does the unspent balance matter?

Because converting it back costs the markup a second time, and small residual balances often sit unused. Loading only what you will spend avoids it.

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Forex Card vs Credit Card Calculator

Forex card against credit card for spending abroad. The card usually has the lower markup, and the unspent balance plus reload charges frequently cancel that advantage.

Also called: travel card comparison, best way to pay abroad.

Cheaper option

The credit card is cheaper

The credit card is cheaper, by ₹980. The forex card costs ₹3,980 and the credit card ₹3,000 net of ₹2,250 in rewards. TCS of ₹7,900 is creditable against your tax, so it is cash flow rather than cost.

Forex card total cost

₹3,980

Credit card net cost

₹3,000

Rewards earned

₹2,250

TCS on the load

₹7,900

Difference

₹980

Cost of the unspent balance

₹320

How this is calculated

Method and background

How this is calculated

A forex card locks a rate at load time and typically carries a lower markup than a credit card foreign transaction fee. Two things erode that. Unspent balance sits on the card and costs money to convert back, and reloading mid-trip incurs the markup again at whatever rate then applies. The credit card charges more per transaction but earns rewards and strands nothing. TCS applies to the forex card load and is creditable against your tax, so it is a cash flow difference rather than a cost.

the forex card locks a rate and strands unspent balance; the credit card charges more but earns rewards

S: Spend
m: Markups
r: Rewards rate

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

a 1.5 lakh trip

Spend abroad in home currency: ₹1,50,000
Forex card rate markup: 2%
Forex card issuance fee: ₹500
Credit card foreign transaction fee: 3.5%
Rewards earned on the credit card: 1.5%
TCS on the forex card load: 5%
Likely unspent balance on the card: ₹8,000

Cheaper optionThe credit card is cheaper

3.5% less 1.5% of 1,50,000

Open this example

no unspent balance removes the drag

Spend abroad in home currency: ₹1,50,000
Forex card rate markup: 2%
Forex card issuance fee: ₹500
Credit card foreign transaction fee: 3.5%
Rewards earned on the credit card: 1.5%
TCS on the forex card load: 5%
Likely unspent balance on the card: ₹0

Cheaper optionThe credit card is cheaper

boundary

Open this example

Method and limits

What it assumes

A single load with the whole trip spend, and the stated unspent balance left over.

What it deliberately does not model

Some credit cards waive the foreign transaction fee entirely, which changes the answer completely.
The forex card rate is locked at load, which is a gamble on the currency either way.

Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator

Frequently asked questions

Why does the unspent balance matter?: Because converting it back costs the markup a second time, and small residual balances often sit unused. Loading only what you will spend avoids it.