Currency Exchange Spread
Plenty of places advertise “no commission” and bury the charge in the rate. Subtract the mid-market rate from the rate you got and divide by the mid rate to expose it.
Your numbers
Spread
1.74%
Fee
24,000
Total
1,404,000
What it means
A 1.74% spread is about average.
Formula
Spread = (Rate you got − Mid-market rate) ÷ Mid-market rate × 100
Use the mid-market rate as the base. Comparing a buy rate against a sell rate double-counts the spread.
What to enter
| Input | Default | Accepted range |
|---|---|---|
| Mid-market rateThe mid-market rate, before anyone adds a margin. | 1,380 | 0 and up |
| Rate you gotThe rate the counter actually gave you. | 1,404 | 0 and up |
| AmountThe amount the calculation starts from — settle whether tax is inside it. | 1,000 | 0 and up |
Step by step
Quick reference table
Results when only Mid-market rate changes and everything else stays put.
| Mid-market rate | Spread (%) | Fee | Total |
|---|---|---|---|
| 690 | 103.48 | 714,000 | 1,404,000 |
| 1,035 | 35.65 | 369,000 | 1,404,000 |
| 1,380 | 1.74 | 24,000 | 1,404,000 |
| 2,070 | -32.17 | -666,000 | 1,404,000 |
| 2,760 | -49.13 | -1,356,000 | 1,404,000 |
What each result means
| Result | At default values |
|---|---|
| Spread (%)The gap between mid-market and what you got — the hidden fee. | 1.74 |
| FeeThe fee charged, as money. | 24,000 |
| TotalEvery item added together — check whether tax or tip is inside it. | 1,404,000 |
Common mistakes
Use the mid-market rate as the base. Comparing a buy rate against a sell rate double-counts the spread.
Glossary
- Mid-market rate
- The mid-market rate, before anyone adds a margin.
- Rate you got
- The rate the counter actually gave you.
- Amount
- The amount the calculation starts from — settle whether tax is inside it.
- Spread
- The gap between mid-market and what you got — the hidden fee.
- Fee
- The fee charged, as money.
- Total
- Every item added together — check whether tax or tip is inside it.
Frequently asked questions
Q. How is Currency Exchange Spread calculated?
Spread = (Rate you got − Mid-market rate) ÷ Mid-market rate × 100 — Plenty of places advertise “no commission” and bury the charge in the rate. Subtract the mid-market rate from the rate you got and divide by the mid rate to expose it.
Q. Can you walk through an example?
With Mid-market rate 1,380, Rate you got 1,404, Amount 1,000, the answer is Spread 1.74%.
Q. What do I need to enter?
Enter Mid-market rate, Rate you got, Amount. The result recalculates as you type, and an empty box counts as zero.
Q. How much does the answer move if I change a number?
Changing only Mid-market rate moves the answer to Mid-market rate 690 → Spread (%) 103.48 and Mid-market rate 2,760 → Spread (%) -49.13. The table below lays out five steps.
Q. How are the numbers rounded?
Money is shown to the nearest whole unit, percentages to one decimal place and everything else to two. What you see is rounded; the calculation itself carries the unrounded value forward.
Q. Anything to watch out for?
Use the mid-market rate as the base. Comparing a buy rate against a sell rate double-counts the spread.
Related calculators
Tax rates and interest conventions differ by country and product — check your contract for real transactions.