Remittance Calculator
Calculate how much a recipient gets after exchange rate markup and transfer fees.
Compares Western Union, Wise, Remitly, and bank wire transfers.
International money transfers (remittances) involve fees and exchange rate margins that significantly affect how much money actually arrives at the destination. Many services advertise “no fees” while hiding profit in the exchange rate spread.
True cost formula: True Cost = Transfer Fee + Exchange Rate Cost Exchange Rate Cost = Transfer Amount × (Mid-Market Rate − Offered Rate) / Offered Rate × Transfer Amount
Or simply: Amount Received = (Send Amount − Fee) × Offered Exchange Rate Amount Received (fair) = Send Amount × Mid-Market Rate (what you’d get with zero markup) Hidden Cost = Fair Amount − Actual Amount Received
Mid-market rate: the real exchange rate found on Google or XE.com — the midpoint between buy and sell rates. Providers always offer a rate worse than mid-market.
Typical exchange rate markups:
- Banks: 3–5% above mid-market
- Western Union / MoneyGram: 2–4% markup + $5–15 fee
- PayPal: 3–4% markup + ~$0.99–3.99 fee
- Wise (formerly TransferWise): 0.35–0.6% markup, transparent fees
- Remitly / WorldRemit: 1–2.5% markup + promotional zero fees on first transfer
Worked example: Sending $1,000 USD to the Philippines (PHP). Mid-market rate: 56.00 PHP/USD. Bank offer: 53.50 PHP/USD + $15 flat fee.
Fair amount = 1,000 × 56.00 = 56,000 PHP Actual amount = (1,000 − 15) × 53.50 = 985 × 53.50 = 52,697 PHP Total hidden cost: 56,000 − 52,697 = 3,303 PHP ≈ $59 equivalent
Using Wise at 0.5% markup + $4.50 fee:
Effective rate = 56.00 × 0.995 = 55.72 PHP/USD
Amount = (1,000 − 4.50) × 55.72 = 995.50 × 55.72 = 55,463 PHP
Saving vs. bank: 2,766 PHP ($49.40)
For frequent senders, comparing true cost — not advertised fees — can save hundreds or thousands per year.