Why use this calculator
Almost every currency conversion people encounter is quoted at the mid-market rate, and almost nobody is ever offered it. The mid-market rate is the midpoint between what banks buy and sell at on the wholesale market, and it is the number shown on news sites and search engines.
What you are actually offered is that rate minus a spread, and because that spread is buried in the rate rather than charged as a visible fee, most travellers and freelancers never see what the conversion cost them. A commission-free bureau at an airport is not free; it has simply moved its entire charge into the rate.
This calculator shows both numbers side by side so the real cost of a conversion is visible before you commit to it.
How to use it
- Enter the amount you are converting and choose the currency you hold and the currency you want.
- Then set the spread your provider charges, which is the part people most often leave at a guess.
- As a guide, airport bureaux typically take eight to twelve per cent, high street bank transfers three to five, credit cards around three, and specialist transfer apps between roughly a half and one per cent.
- If you do not know, convert a recent transaction: divide what you received by what you sent, compare that against the mid-market rate on the day, and the gap is the spread you were charged.
What each result means
- You receive
- What lands in your account or hand after the provider's margin. This is the only figure that matters when comparing two providers against each other.
- Spread cost in your currency
- The provider's margin measured in the currency you are sending, which is the easiest way to compare it with a flat transfer fee quoted by another provider.
- To receive the mid-market amount, send
- How much you would have to send at the offered rate to end up with what the mid-market rate would give you. The difference from your amount is the true price of using this provider.
- At the mid-market rate
- What you would get with no margin at all. Treat it as the benchmark to measure a provider against, not as an achievable rate.
- Cost of the spread
- The provider's margin expressed in the target currency. On a large transfer this routinely exceeds any visible transfer fee by a wide margin.
- Mid-market rate
- The wholesale midpoint for one unit of your currency. This is the rate quoted by search engines and financial news sites.
- Rate you are offered
- The mid-market rate after the spread is removed. Compare this against the rate a provider quotes you to check their claimed margin.
- Inverse rate
- The same relationship the other way round, useful when a price abroad is quoted in the local currency and you want it in yours.
- Rates as at
- The date these indicative rates were last checked. Exchange rates move continuously, so treat anything older than a few days as approximate.
The formula
Every conversion routes through the US dollar.
Mid-market rate = (US dollar value of one unit of the from currency) divided by (US dollar value of one unit of the to currency)
Mid-market amount = amount x mid-market rate
The rate you are actually offered = mid-market rate x (1 minus the spread percentage)
The amount received = amount x that offered rate
The cost of the spread is simply the difference between the two amounts, expressed in the target currency.
How this number is used in practice
The single most expensive currency decision most travellers make is accepting dynamic currency conversion, the prompt at a foreign card terminal or cash machine offering to charge you in your home currency instead of the local one. It sounds helpful and it is consistently the worse option, because the merchant's payment processor sets the rate and typically adds between three and seven per cent on top of whatever your own card would have charged. Always choose to be billed in the local currency and let your own bank do the conversion.
For larger transfers the spread dwarfs the fee, and providers know that people compare fees. A bank advertising a twenty pound transfer fee on a ten thousand pound transfer while taking a four per cent spread is charging four hundred and twenty pounds, not twenty.
The test that cuts through all of it is to ask a single question: how many units of the destination currency will actually arrive. That number already contains every fee and every margin, and it is directly comparable between providers in a way that advertised rates and fees are not.
Freelancers and contractors invoicing overseas clients are exposed twice, once on the conversion and once on timing, because major currency pairs commonly move several per cent across a quarter. Holding a multi-currency account and converting in larger batches when the rate is favourable, rather than automatically on each invoice, measurably reduces both costs.
Anyone invoicing regularly in a foreign currency should also agree in the contract who bears the conversion cost, since silence on the point usually means it lands on the person receiving the money.
Worked examples
1,000 US dollars to euros at a 3 per cent bank spread
You receive 835.49 euros against a mid-market 861.33, so the spread costs 25.84 euros
2,000 Australian dollars to Japanese yen through an airport bureau at 10 per cent
You receive 198,512 yen against a mid-market 220,569, a loss of 22,057 yen on one transaction
5,000 British pounds to US dollars through a specialist app at 0.5 per cent
You receive 6,726.20 US dollars, keeping all but 33.80 of the 6,760.00 mid-market value
When people use it
- Budgeting for a trip abroad and seeing what the conversion itself will cost
- Comparing two money transfer providers on the amount that actually arrives
- Freelancers pricing an invoice in a client's currency
- Checking whether a bank's quoted rate is reasonable against the mid-market benchmark
- Comparing the price of a product sold in several countries
Tips
- Always decline dynamic currency conversion abroad and pay in the local currency. It typically costs three to seven per cent extra.
- Compare providers on the amount that arrives, not on the advertised fee. The spread is usually the larger charge.
- Airport and hotel bureaux are the most expensive option available, frequently taking ten per cent or more.
- A commission-free provider is not free. The entire charge has simply been moved into the exchange rate.
- For large transfers, a quarter of a per cent difference in spread is worth more than any fixed fee you are comparing.
- These rates are indicative. Confirm the live rate with your provider before committing to a transaction.
What it assumes, and where it stops being accurate
- Rates are indicative mid-market figures as at 13 September 2026 and are not live. Currency markets move continuously.
- All conversions route through the US dollar, which can introduce a small rounding difference on exotic cross pairs.
- The spread is applied as a single percentage. Real providers often combine a spread with a separate fixed fee.
- Excludes fixed transfer fees, card issuer foreign transaction fees and cash withdrawal charges, all of which are additional.
- Excludes dynamic currency conversion, which can add a further three to seven per cent at a foreign terminal.
- For an actual transaction, always confirm the rate with your provider immediately before converting.
Terms used on this page
- Mid-market rate
- The midpoint between interbank buy and sell prices, used as the benchmark rate.
- Spread
- The margin a provider adds to the mid-market rate, charged inside the rate rather than as a fee.
- Dynamic currency conversion
- Being billed in your home currency at a foreign terminal, usually at a markedly worse rate.
- Foreign transaction fee
- A percentage charged by a card issuer on any purchase made in another currency.
- Currency pair
- Two currencies quoted against each other, such as the euro against the US dollar.
Questions people ask
- What is the mid-market rate?
- The midpoint between the buy and sell prices for a currency pair on the wholesale interbank market. It is the rate quoted by search engines and financial news sites, and it is the fairest benchmark to measure a provider against, but it is not a rate ordinary customers are offered.
- Are these rates live?
- No. They are indicative figures checked as at the date shown in the results and are intended for estimating and comparing, not for transacting. Major pairs can move one to two per cent in a day, so confirm the live rate with your provider before converting any significant amount.
- Why do banks offer a worse rate?
- Banks apply a spread to the mid-market rate, which is how they are paid for the service. It is charged inside the rate rather than shown as a fee, which is why a conversion advertised as commission free can still be the most expensive option available to you.
- What is dynamic currency conversion?
- The offer at a foreign card terminal or cash machine to bill you in your home currency instead of the local one. The merchant's processor sets the rate and usually adds three to seven per cent. Always decline it and choose to be charged in the local currency instead.
- How do I work out what spread I was charged?
- Divide the amount you received by the amount you sent to get the rate you were actually given, then compare that against the mid-market rate on the day of the transaction. The percentage difference between the two is the spread, including any margin presented as commission free.
- Should I convert money before I travel?
- Usually not as cash at an airport, which is the most expensive route. A card with no foreign transaction fee, used in the local currency with dynamic currency conversion declined, typically beats pre-purchased cash, though carrying a small amount of local currency for arrival remains sensible.
Use this with
Currency Converter answers one part of the question. These pick up where it stops: Inflation Calculator, Compound Interest Calculator, Tip Calculator and Unit Price Comparison Calculator.
Where these figures come from
This calculation is jurisdiction-neutral arithmetic. No country-specific rules are applied.
- European Central Bank: euro foreign exchange reference rates. Official daily reference rates published each working day
- Bank of England: daily spot exchange rates. Sterling spot rates against major currencies
- Reserve Bank of Australia: exchange rates. Australian dollar rates and historical series
Currency Converter produces an estimate for general information. It is not financial, tax, medical, legal or engineering advice. read the full disclaimer. Spotted a wrong number? Report it and it gets fixed. The form picks up this calculator and the inputs you used.