Remittance Calculator

International money transfers (remittances) involve fees and exchange rate margins that significantly affect how much money actually arrives at the destination. Many services advertise “no fees” while hiding profit in the exchange rate spread.

True cost formula:

True Cost = Transfer Fee + Exchange Rate Cost
Exchange Rate Cost = Amount Converted × (Mid-Market Rate − Offered Rate), counted in the destination currency

Or simply:
Amount Received = (Send Amount − Fee) × Offered Exchange Rate
Amount Received (fair) = Send Amount × Mid-Market Rate (what you’d get with zero markup)
Hidden Cost = Fair Amount − Actual Amount Received

Mid-market rate: the real exchange rate found on Google or XE.com, the midpoint between buy and sell rates. Providers always offer a rate worse than mid-market.

Typical exchange rate markups:

• Banks: 3–5% above mid-market
• Western Union / MoneyGram: 2–4% markup + $5–15 fee
• PayPal: 3–4% markup + ~$0.99–3.99 fee
• Wise (formerly TransferWise): 0.35–0.6% markup, transparent fees
• Remitly / WorldRemit: 1–2.5% markup + promotional zero fees on first transfer

Worked example:

Sending $1,000 USD to the Philippines (PHP). Mid-market rate: 56.00 PHP/USD.
Bank offer: 53.50 PHP/USD + $15 flat fee.

Fair amount = 1,000 × 56.00 = 56,000 PHP
Actual amount = (1,000 − 15) × 53.50 = 985 × 53.50 = 52,697 PHP
Total hidden cost: 56,000 − 52,697 = 3,303 PHP ≈ $59 equivalent

Using Wise at 0.5% markup + $4.50 fee:
Effective rate = 56.00 × 0.995 = 55.72 PHP/USD
Amount = (1,000 − 4.50) × 55.72 = 995.50 × 55.72 = 55,469 PHP
Saving vs. bank: 2,772 PHP ($49.75)

For frequent senders, comparing true cost rather than advertised fees can save hundreds or thousands per year.