Remittance Cost Calculator (Compare Money Transfers)
Compare two money transfer providers for sending money abroad: how much the recipient gets, the fee plus exchange-rate markup, the total cost in percent and which option is cheaper.
How it works
you pay = amount + fee (fee on top) or amount (fee deducted) · recipient gets = amount converted × provider rate · total cost = you pay − recipient gets ÷ mid-market rate · cost % = total cost ÷ you pay · exchange-rate markup = 1 − provider rate ÷ mid-market rate
The true cost of sending money abroad has two parts: the visible transfer fee and the hidden markup in the exchange rate — the gap between the provider’s rate and the mid-market rate. A "no fee" transfer can be the most expensive if its rate is poor. The World Bank’s Remittance Prices Worldwide database measures cost exactly this way, as a percent of the amount sent; the global average is around 6%, and the UN Sustainable Development Goal target is 3% or less. Compare providers for the same amount on the same day.
Worked example
Sending $500 with the fee added on top at a mid-market rate of 17.00: provider A charges $4.99 and gives 16.70, so the recipient gets 8,350.00 for a total cost of $13.81 (2.74% of the $504.99 you pay). Provider B charges no fee but gives 16.40, so the recipient gets 8,200.00 for a total cost of $17.65 (3.53%). Provider A is cheaper: recipient gets with the cheaper option 8,350.00 — 150.00 more.
Sources: World Bank — Remittance Prices Worldwide · CFPB — Sending money abroad (remittance transfer rule)
Frequently asked questions
How do I calculate the real cost of a money transfer?
Convert what the recipient gets back into your currency at the mid-market rate and subtract it from what you paid. That captures both the fee and the exchange-rate markup.
What is the mid-market exchange rate?
The midpoint between the buy and sell prices on the currency market — the rate banks use between themselves. Central banks and market data sites publish it; providers add a markup to it.
Is a no-fee transfer really free?
Rarely. Providers that charge no fee usually earn from a weaker exchange rate. A 3% markup on $500 costs $15, more than many fees.
What is a good remittance cost?
The UN target is 3% of the amount sent or less. The World Bank reports a global average of about 6%, with banks usually more expensive than digital money transfer operators.
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Estimate only. Store promotions, taxes, fees and refund rules vary — check the terms on the shelf, the receipt or the provider’s quote.