Exchange Rate Markup Calculator
The exchange-rate markup is the cost almost nobody sees — a margin hidden inside the rate you're quoted. Enter the real rate and the one you were offered to find out exactly what it's costing you.
Calculate the Hidden Markup
3.26% off the mid-market rate
Enter the real rate and the rate you were quoted to see what the markup costs you.
Both rates are “units you receive per 1 unit sent.” Not sure of the real rate? Look it up on our live currency converter →
What the rate costs you
That 3.26% markup is on top of any upfront fee — it's the cost most people never notice. A service that uses the real mid-market rate (0% markup) would hand the recipient the full amount.
Where the markup hides
The mid-market rate is the real exchange rate — the midpoint between buy and sell prices that banks use with each other, and the number you see on Google or Reuters. When a bank or transfer service quotes you a worse rate and keeps the difference, that gap is the markup. Because it's built into the rate rather than shown as a fee, it's the most overlooked cost in moving money.
It adds up fast: on a $5,000 transfer, a 3% markup is $150 gone, invisibly, and often far more than the advertised “transfer fee.” That's why a “no fee” transfer can still be expensive, and why comparing the total cost matters.
Benchmark against the mid-market rate. Compare how many units the recipient actually gets for your money. A service that gives you the real rate (0% markup) plus one small visible fee almost always beats a “no fee” quote with a marked-up rate.
What a markup costs at different transfer sizes
The markup is a percentage, so the dollar cost scales straight with the amount you send, and it stays invisible the whole way up. Here's what a 1%, 3% and 5% markup quietly takes out of a transfer:
| Transfer amount | 1% markup | 3% markup | 5% markup |
|---|---|---|---|
| $500 | $5 | $15 | $25 |
| $1,000 | $10 | $30 | $50 |
| $5,000 | $50 | $150 | $250 |
| $10,000 | $100 | $300 | $500 |
None of this shows up as a “fee”: it's the difference between what the recipient gets at the real rate and what they actually get. That's why a $300 loss on a $10,000 wire can sit right next to a “$0 transfer fee.”
Typical markups by provider
| Provider | Typical markup | Notes |
|---|---|---|
| Banks | 2%–5% | on top of a $20–$50 wire fee |
| PayPal | 3%–4% | currency-conversion margin |
| Western Union / MoneyGram | 1%–3% | more on exotic corridors |
| Wise & mid-market services | 0% | the real rate + a small transparent fee |
Frequently Asked Questions
What is an exchange rate markup?
A markup is the gap between the real mid-market exchange rate and the worse rate a bank or service quotes you. It is not shown as a fee — it is baked into the rate — so most people never notice it. A typical markup is 2% to 5% at banks and 3% to 4% at PayPal, while services like Wise use the mid-market rate with no markup.
How do I calculate the exchange rate markup?
Subtract the rate you were offered from the real mid-market rate, then divide by the mid-market rate. For example, if the real rate is 0.92 and you were offered 0.89, the markup is (0.92 − 0.89) ÷ 0.92 = about 3.3%. On a $1,000 transfer, the recipient receives about 30 units less of the destination currency — worth roughly $33 — lost in the rate alone.
What is a typical exchange rate markup?
Banks usually add 2% to 5%, PayPal adds about 3% to 4% on currency conversion, and traditional money-transfer firms like Western Union add roughly 1% to 3% (more on exotic currencies). Specialist services such as Wise give you the real mid-market rate with a 0% markup and a small transparent fee instead.
Is a “no fee” transfer really free?
Usually not. Services advertising “no fees” often make their money on the exchange-rate markup instead, which can cost more than a transparent fee. Always compare the total cost — the upfront fee plus the markup — using the real mid-market rate as your benchmark.
How do I avoid exchange rate markups?
Use a service that gives you the mid-market rate (such as Wise), check the real rate on a neutral converter before you send, fund transfers from a bank rather than a card, and compare how many units the recipient actually receives — not just the advertised fee.
How much does a 3% markup cost on $10,000?
About $300. A 3% markup means the recipient gets 3% fewer units of the destination currency than the real mid-market rate would give: on a $10,000 transfer that is roughly $300, usually invisible because it is built into the rate rather than charged as a fee. The same 3% is $30 on $1,000 and $150 on $5,000.
Why don’t banks show the markup as a fee?
Because it is legal to build a margin into the exchange rate instead of listing it as a charge. Disclosure rules cover upfront fees, but the rate itself is the bank’s to set, so a “no transfer fee” offer can still carry a 3%–5% markup. The only defense is to benchmark every quote against the real mid-market rate and compare what the recipient actually receives.
Typical markups, provider by provider
The markup this tool measures is the gap between the real mid-market rate — the one you see on Google or Reuters — and the rate you were actually quoted. It is the most expensive part of most transfers precisely because it is never shown as a fee.
As a rough guide for 2026: high-street banks and the big wire services tend to build in 2–4% on a conversion; debit and credit cards used abroad run anywhere from about 1% to 3% once the network and any issuer fee are counted; and dedicated money-transfer specialists that pass through the mid-market rate typically charge 0.3–1% plus a small visible fee. To use the calculator, enter the mid-market rate and the rate you were offered; the difference, expressed as a percentage and a dollar amount, is the markup. Comparing that number across providers — rather than comparing headline fees — is the single most reliable way to find the cheapest way to send.
Related Calculators & Guides
Live Currency Converter
Find the real mid-market rate for 150+ currencies.
Exchange Rates Guide
How rates and markups work, and how to get the real one.
Wise Fees Explained
The mid-market rate with no markup, and what Wise really charges.
Compare Money Transfer Fees
Find the cheapest service once you factor in the markup.