Remittance Cost Calculator
Sending money abroad usually involves two costs: a stated transfer fee and a hidden exchange-rate markup on the rate itself. Together they determine how much your recipient actually receives. This calculator combines both so you can compare providers honestly and see the true cost of a remittance.
Enter the amount you are sending, any flat transfer fee, the exchange rate your provider offers, and the mid-market rate for the same pair. The calculator shows what your recipient receives, the total cost (fee plus hidden markup), and the effective percentage you paid.
It is the honest way to compare money-transfer services, because it adds the stated fee and the hidden rate markup together — the only figure that tells you which provider actually delivers the most.
Enter your values to see the result.
How this is calculated
A remittance has two costs. The stated transfer fee is the explicit charge for the transfer. The hidden rate markup is the gap between the mid-market rate and the rate your provider offers, multiplied by the send amount — the revenue the provider makes inside the rate. The total cost is the stated fee plus the hidden markup, and the effective cost percentage is the total cost divided by the send amount.
What your recipient receives is the send amount multiplied by the provider’s rate. Comparing that delivered amount across providers is the simplest way to find the cheapest service, because it already bundles both costs. The calculator shows the delivered amount alongside the cost breakdown so you can see both.
The model covers the sender-side cost only. It does not include receiving-side fees (cash-pickup charges or inbound wire fees the recipient’s bank may levy), which reduce the net amount delivered. For a full picture, ask the recipient what they actually receive and compare that net figure across providers. Funding the transfer by card may also add a processing fee not captured here.
Worked example
Sending $2,000 to a euro account. Transfer fee $5, mid-market rate 1.08, provider’s rate 1.05.
- 1Recipient receives = 2,000 × 1.05 = €2,100.
- 2Receive at mid-market = 2,000 × 1.08 = €2,160; hidden markup = €60.
- 3Total cost = $5 fee + €60 markup ≈ $65 equivalent.
- 4Effective cost = 65 ÷ 2,000 × 100 ≈ 3.25%.
Frequently asked questions
- What is the difference between the fee and the markup?
- The fee is the stated charge for the transfer. The markup is a margin hidden in the exchange rate — the gap between the rate you get and the mid-market rate. Both reduce what your recipient receives, and both should be counted when comparing providers.
- Why is the effective cost higher than the stated fee?
- Because the markup is added on top of the fee. A provider with no fee but a 3% markup can cost more than one with a small fee and the mid-market rate. Always compare the total cost, not just the headline fee.
- How can I reduce remittance costs?
- Compare the total cost across several providers, send larger amounts less often to dilute flat fees, and prefer providers that use the mid-market rate. Avoid funding transfers with a credit card, which often adds a cash-advance fee.
- Why is the effective cost higher than the stated fee?
- Because the hidden rate markup is added on top. A provider with no stated fee but a 3% markup costs more than one with a small fee and the mid-market rate. The effective cost percentage bundles both, which is why it is the honest comparison.
- Does this include fees the recipient pays?
- No. Some corridors charge the recipient a cash-pickup or inbound wire fee, which reduces the net delivered amount. Ask the recipient what they actually receive and compare that net figure across providers for a true comparison.
Related calculators
Method: stated fee plus exchange-rate markup, with effective cost as total ÷ send amount. Remittance cost benchmarks are published by the World Bank Remittance Prices Worldwide database. Last updated: September 2026.
These results are indicative estimates for planning only and do not constitute financial advice. Exchange rates, tax rules, customs allowances and tipping customs vary by country, provider and over time. Always confirm figures with your bank, the relevant authority or a qualified adviser before acting on a calculation.