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.
$17,351.69 total, which is 8.68% of the amount. The spread alone is $6,101.69, more than the 0.5% commission you were quoted. You receive 2,192.98 in foreign currency.
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
Method 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 · United States · 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.