Finance Tools

Exchange Rate Spread Calculator

Calculate the exchange rate spread between the mid-market rate and the rate you’re offered, and estimate the hidden cost impact.

Exchange Rate Spread Calculator

The exchange rate spread is the difference between the mid-market rate and the rate you’re offered. A larger spread usually means a bigger hidden cost.

The “true” market rate (no markup).
The rate shown by your bank/service.
If provided, we’ll estimate the hidden loss amount.

How it works

Spread (%) = (Mid-Market Rate − Offered Rate) ÷ Mid-Market Rate × 100. Even without an explicit fee, a worse offered rate can create a hidden cost.

FAQ

Is spread the same as a markup?
They’re closely related. A markup often appears as a worse offered rate, which increases the spread versus the mid-market rate.

Why does the spread matter?
A larger spread means you receive less value than you should at the true market rate.

How to use this exchange rate spread calculator

  1. Enter the mid-market exchange rate (true market rate).
  2. Enter the offered exchange rate (bank/service rate).
  3. Optionally enter an amount to estimate the cost impact.
  4. Click Calculate to see spread (%) and estimated hidden cost.

Example

If the mid-market rate is 1.10 and the offered rate is 1.05, the calculator shows the spread and cost impact:

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