Compare exchange fees: calculate total costs
Consider fixed fees and rate markups together: compare exchange offers using the total charge and payout.
Look beyond the visible fee
An offer without a separately stated conversion fee may contain a markup in the rate. Conversely, an offer with a fixed fee may be cheaper for a larger amount. The key question is: what target amount do I receive for my entire payment? The answer depends on the amount and the specific terms.
A fixed fee affects small amounts more
A simplified example: a EUR 5 fee is first deducted from EUR 100. The remaining EUR 95 is converted at a hypothetical USD 1.10 per EUR, giving USD 104.50. Without the fee, it would be USD 110. With EUR 1,000 and the same fixed fee, EUR 995 would be converted. The absolute fee stays the same, while its share of the source amount falls.
Combine rate markups and extra charges
To compare fully, understand the order of charges. A fee can be deducted before conversion, charged afterwards in the target currency or paid in addition. Do not simply add percentages. First calculate the actual total charge and payout. Then divide the target amount received by the total charge in the source currency to obtain an effective comparison rate.
Compare two offers with the same budget
With a total budget of EUR 500, offer A might pay USD 540 and offer B USD 535. All else equal, A gives five dollars more. But if A adds a fee outside the EUR 500, the comparison basis is no longer equal. Ask explicitly about the total charge, not just the amount used for exchange.
Keep a practical comparison record
Record the source amount, total charge, target amount, time, possible extra costs and offer validity. Also check whether receiving or cash fees may apply separately. Our converter provides the reference amount; individual fees are excluded. The examples explain the calculation only and do not assess particular banks or payment services.
Understand the calculation
The numerical examples are hypothetical. How the converter works explains the calculation and its limits.