a 2 lakh remittance
- Amount in home currency
- ₹2,00,000
- Interbank rate
- 88.5
- Rate you were offered
- 91.2
- Stated commission
- 0.5%
- Fixed charges
- ₹250
- Tax collected at source
- 5%
Total cost of the exchange₹17,352
2,00,000 / 91.2
Open this exampleEverydaytravel
Currency Exchange with Fees Calculator
The true cost of a currency exchange, separating the rate markup from the visible fees. The spread is almost always the largest component and is the one not shown to you.
Also called: currency exchange fee, forex markup calculator.
Total cost of the exchange
₹17,352
₹17,352 total, which is 8.68% of the amount. The spread alone is ₹6,102, more than the 0.5% commission you were quoted. You receive 2,192.98 in foreign currency.
Hidden in the rate
₹6,102
Stated commission
₹1,000
Tax collected at source
₹10,000
Spread as a percentage
3.05%
Total cost as a percentage
8.68%
Foreign currency received
2,192.98
What you would get at the interbank rate
2,259.89
Method and background
How this is calculated
The interbank rate is what banks trade at; the rate you are offered includes a markup. That markup is a real cost and it is usually several times the stated commission, which is why a zero commission offer can be the more expensive one. Comparing providers means comparing the total, and India also applies tax collected at source on foreign remittances above a threshold, which is creditable against your tax liability rather than lost.
the markup hidden in the exchange rate, which is usually larger than the visible commission- r
- Rates
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.
no markup means no spread cost
- Amount in home currency
- ₹2,00,000
- Interbank rate
- 88.5
- Rate you were offered
- 88.5
- Stated commission
- 0.5%
- Fixed charges
- ₹250
- Tax collected at source
- 5%
Total cost of the exchange₹11,250
boundary
Open this exampleMethod and limits
What it assumes
- A single transaction at the rate you enter.
What it deliberately does not model
- The TCS threshold and rate depend on the purpose of the remittance and are simplified here.
- Card networks apply their own rate, which differs again from both figures.
Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator
Frequently asked questions
- Why is zero commission not free?
- Because the cost is in the exchange rate. A provider quoting no commission and a rate three percent off interbank is charging you three percent.
- Is TCS an extra cost?
- No. It is creditable against your income tax, so it affects cash flow rather than total tax paid, provided you claim it.