Finance Tools

Bank vs Market Exchange Rate Calculator

Compare a bank’s offered exchange rate to the mid-market rate and estimate the hidden cost of exchanging money at the bank.

Bank vs Market Exchange Rate Calculator

Banks often offer a worse exchange rate than the mid-market rate. This tool compares the bank rate to the true market rate and estimates the hidden cost.

The “true” market rate (no markup).
The rate your bank is offering.
Enter the amount in your base currency.

How it works

We compare the bank’s offered rate to the mid-market rate. The difference is the implied markup, which reduces the value you receive when exchanging money.

FAQ

Why do banks offer worse exchange rates?
Banks can embed profit into the rate itself, instead of charging a visible fee.

What’s a good way to compare providers?
Use the same mid-market reference rate and compare both the rate and any explicit fees.

How to use this bank vs market exchange rate calculator

  1. Enter the mid-market exchange rate (true market rate).
  2. Enter the bank’s offered exchange rate.
  3. Enter the amount you want to exchange.
  4. Click Calculate to see the hidden loss and the effective markup percentage.

Example

If the mid-market rate is 1.10 but your bank offers 1.05, you can estimate the cost of using the bank:

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