Currency Exchange Cost Calculator
Compare currency exchange fees across methods.
Calculate the true cost of exchanging money at banks, airports, and ATMs abroad.
Currency exchange involves converting an amount from one currency to another using the current exchange rate, then accounting for any fees charged by the exchange service. The gap between the mid-market rate and what you actually receive is called the spread, and it is how banks and exchange bureaus make their profit.
Exchange formulas:
Converted Amount = Original Amount × Exchange Rate
Fee = Converted Amount × Fee % (or flat fee, whichever applies)
Net Amount Received = Converted Amount − Fee
Effective Rate = Net Amount Received ÷ Original Amount
Worked example: Exchanging $1,000 USD to Euros. Mid-market rate: 1 USD = 0.924 EUR. Bank charges a 2.5% fee.
- Converted: $1,000 × 0.924 = 924.00 EUR
- Fee: 924 × 0.025 = 23.10 EUR
- Net received: 924 − 23.10 = 900.90 EUR
- Effective rate: 900.90 ÷ 1,000 = 0.9009 EUR per USD (vs. mid-market 0.924)
Fee structures to watch for:
| Method | Typical Fee |
|---|---|
| Airport exchange kiosk | 5–15% |
| Bank wire transfer | $15–50 flat + 1–3% |
| Credit card (with foreign fee) | 1–3% |
| Credit card (no foreign fee) | 0% |
| Wise / Revolut transfer | 0.3–1% |
| ATM abroad (local bank) | 1.5–3% + flat fee |
Tips for getting the best rate:
- Always compare the effective rate (after fees), not the headline rate
- Avoid exchanging at airports — they charge the highest spreads
- Use a credit card with no foreign transaction fee for everyday purchases abroad
- For large transfers, use a dedicated service like Wise, which offers near mid-market rates
Dynamic currency conversion (DCC) warning: When a foreign merchant offers to charge you in your home currency, always decline. DCC rates are typically 3–8% worse than your card’s rate.