FX costs: the quoted rate and the visible fee

Why this matters

A low visible fee does not describe the whole cost of a currency conversion. This calculator compares the entered quote with a reference rate expressed in the same direction: recipient currency units per sender currency unit. Neither rate is fetched live.

Before entering the numbers

A low visible fee does not describe the whole cost of a currency conversion. This calculator compares the entered quote with a reference rate expressed in the same direction: recipient currency units per sender currency unit. Neither rate is fetched live.

Open the calculator: FX Conversion & Hidden Markup Calculator. All figures below are hypothetical. CU denotes a consistent currency unit, not a named currency. Field and result names match the English calculator interface.

Example 1: the starting assumptions

Enter 1,000 sender CU, a reference rate of 0.86, a quoted rate of 0.84 and a 5 CU fee paid on top. The recipient receives the converted principal while the sender pays the principal plus the fee.

Entered fields: Amount to convert: 1000 (sender CU) · Reference rate: 0.86 (recipient CU / sender CU) · Quoted rate: 0.84 (recipient CU / sender CU) · Stated fee: 5 (sender CU) · Fee treatment: Added on top

Calculated results: Recipient receives: 840.00 recipient CU · Sender total paid: 1,005.00 sender CU · Rate discount vs reference: 2.33 % · Signed FX cost: 23.26 sender CU · All-in cost vs reference: 28.26 sender CU

• recipient = 1,000 × 0.84 = 840 recipient CU
• sender debit = 1,000 + 5 = 1,005 sender CU
• FX cost = 1,000 × (1 − 0.84/0.86) = 23.2558 sender CU

Example 2: change the inputs

Keep the amounts and rates, but deduct the fee from the transfer. Only 995 sender CU is converted. The recipient amount changes, and the signed FX cost is measured against that smaller converted principal.

Entered fields: Amount to convert: 1000 (sender CU) · Reference rate: 0.86 (recipient CU / sender CU) · Quoted rate: 0.84 (recipient CU / sender CU) · Stated fee: 5 (sender CU) · Fee treatment: Deducted from amount

Calculated results: Recipient receives: 835.80 recipient CU · Sender total paid: 1,000.00 sender CU · Rate discount vs reference: 2.33 % · Signed FX cost: 23.14 sender CU · All-in cost vs reference: 28.14 sender CU

• converted principal = 1,000 − 5 = 995 sender CU
• recipient = 995 × 0.84 = 835.80 recipient CU
• total cost = 5 + 995 × (1 − 0.84/0.86) = 28.1395 sender CU

What the result leaves out

A reference rate is a comparison input, not a rate necessarily available to a customer. Recipient bank fees, card charges, taxes and later exchange movements are absent unless separately reflected in the inputs.

Arithmetic uses unrounded intermediate values; displayed numbers are rounded. These examples document the model, not a provider quote or an observed transaction.

18+. Educational information only. This is not financial, investment, legal or tax advice, and it is not a guarantee of any result. Betting, gambling and crypto involve a risk of losing money. Estimates depend on your inputs; verify current provider terms and local rules.

Practical checklist

• Record the source, units and time of each input.
• Keep fees and principal in their stated units.
• Reproduce both examples before comparing other inputs.
• Read the stated limitations and current provider terms.