True cost of international transfers including hidden exchange rate margins.

International money transfers have two costs: the explicit upfront fee and the implicit cost of the exchange rate margin. Banks often advertise low fees while charging 2-4% above interbank exchange rate — turning a 'fee-free' transfer of 1,000 into an actual cost of 20-40. Specialist providers (Wise, Revolut, etc.) typically charge 0.3-1% margin plus small upfront fee.

For regular international transfers (supporting family, paying overseas mortgage, remote work payments), the annual cost adds up quickly. 2,000 monthly transfer at 3% bank margin = 720/year in hidden costs. Same transfer at 0.5% specialist margin + 4 fee = 168/year. Savings of 550/year purely from provider selection.

The calculator makes both cost components explicit. Most people only see the upfront fee and assume that's the total cost — missing the larger margin cost. Making both visible enables accurate comparison and usually reveals significant savings from switching providers.

How to use it

Input typical transfer amount, upfront fee per transfer, exchange rate margin percentage (what the provider charges above interbank rate), and transfers per year. The tool shows annual cost including both components.

What the result means

Total annual cost includes upfront fees plus margin loss. Per-transfer cost normalises the total. Compare across providers to find most cost-effective option. Interbank rate is the wholesale rate — every provider adds something; specialists add less.

Comparison tool, not financial advice.

A worked example

Try the defaults: transfer amount of 2,000, upfront fee of 15, exchange rate margin of 2.5%, transfers per year of 12. The tool returns 780.00. You can adjust any input and the result updates as you type — no submit button, no reload. That's the real power here: seeing how sensitive the output is to one or two assumptions.

What moves the number most

The result responds to Transfer Amount, Upfront Fee, Exchange Rate Margin, and Transfers Per Year. Frequency and unit price pull the total in different directions. The biggest surprise for most people is how small recurring amounts compound into large annual figures — that's where this calculation earns its keep.

The formula behind this

Cost per transfer is fixed fee plus margin (amount × margin%). Annual cost is per-transfer × frequency. Everything the calculator does is shown in the formula box below, so you can check the math against your own spreadsheet if you want.

What the number doesn't include

Life events generate side costs: time off work, travel for guests, aftercare, lost weekends. The figure here covers the direct costs. Noting the indirect ones alongside avoids the post-event surprise.

What this doesn't capture

Life events generate side costs the figure doesn't include: time off work, lost income, travel for others, aftercare. Add 10–15% to the direct number as a buffer; the items you haven't thought of usually fill most of it.