Calculate the true cost of currency conversion on international payments. See the net amount you receive after exchange rate markup and processing fees.
When you receive a payment in a foreign currency and it's converted to your home currency, the payment processor typically adds a markup to the mid-market exchange rate. This markup — usually 1–3% — is a hidden fee that's separate from the stated processing fee.
For example, if the mid-market rate is 1 EUR = $1.10, but PayPal converts at $1.07, the 2.7% difference is their currency conversion spread. On a €100 payment, you lose $3 before any processing fees are deducted.
This calculator shows the net amount you receive after both the exchange rate markup and processing fees. Use it to compare the true cost of receiving foreign currency payments across different processors. Whether you are a beginner or experienced professional, this free online tool provides instant, reliable results without manual computation. By automating the calculation, you save time and reduce the risk of costly errors in your planning and decision-making process.
Currency conversion markups are hard to see because they're hidden in the exchange rate, not stated as a separate fee. This calculator makes the hidden cost visible. Compare processors by their total effective fee including the currency spread to choose the cheapest option for your corridors. Having a precise figure at your fingertips empowers better planning and more confident decisions.
Amount in Home Currency = Foreign Amount × Mid-Market Rate Conversion Fee = Amount in Home Currency × Conversion Fee% Net Converted = Amount in Home Currency − Conversion Fee Processing Fee = (Net Converted × Processing Rate%) + Per-Txn Fee Net Received = Net Converted − Processing Fee
Result: Net Received: $103.98 | Total Fees: $6.02 | Effective Rate: 5.5%
Payment: €100. Mid-market rate: 1 EUR = $1.10 → $110.00. Conversion fee: $110 × 2.5% = $2.75. Net converted: $107.25. Processing: ($107.25 × 2.9%) + $0.30 = $3.11 + $0.30 = $3.41. Net received: $107.25 − $3.41 = $103.84. Total fees: $6.16, effective rate: 5.6%.
Currency conversion fees come in two forms: (1) An explicit percentage fee (PayPal's “2.5% currency conversion fee”), and (2) An inflated exchange rate (the processor quotes a worse rate than mid-market). Some processors use both, making the true cost hard to determine. Always compare the net amount you receive to what you'd receive at the mid-market rate to see the real cost.
Wise Business: 0.35–1.5% total, near mid-market rate. Stripe: 1% conversion fee over mid-market. PayPal: 2.5–4% over mid-market. Payoneer: 0.5–2% depending on method. Traditional banks: 2–5% over mid-market plus wire fees. For sellers receiving $10K+ monthly in foreign currencies, the difference in conversion costs can be $100–500/month.
Exchange rates fluctuate daily. A 5% swing in EUR/USD over a month can significantly impact your margins. Protect against this by: converting currencies regularly rather than letting large balances accumulate, using forward contracts for known future payments, pricing with a built-in buffer (add 2–3% to account for rate fluctuations), or hedging through financial instruments.
The mid-market (or interbank) rate is the real exchange rate between two currencies — the midpoint between buy and sell prices. This is the rate you see on Google or XE.com. Payment processors add a markup of 1–4% to this rate, which is their conversion fee.
PayPal's currency conversion fee is 2.5–4% above the mid-market rate, depending on the currency pair and your country. This is on top of their processing fee (3.49% + $0.49 for international). Total effective cost can be 6–8% for cross-border payments with conversion.
Hold funds in the foreign currency using a multi-currency account (Wise, Payoneer, Revolut). Only convert when you need to and when rates are favorable. You can also accept only your home currency, but this shifts conversion cost to the buyer and may reduce conversion rates.
Stripe charges 1% for currency conversion vs. PayPal's 2.5–4%. Stripe is generally cheaper for international transactions. However, Wise Business (0.35–1.5%) is cheaper than both. For high-volume sellers, Adyen and Checkout.com offer competitive rates through interchange++ pricing.
A multi-currency account lets you hold funds in multiple currencies without converting. Wise, Payoneer, and Revolut Business offer this. You receive EUR in your EUR balance, GBP in your GBP balance, and convert only when needed at favorable rates. This can save 1–3% per transaction.
Yes, pricing in local currency increases conversion by 10–20%. Use Shopify multi-currency or Stripe's adaptive pricing. The conversion cost shifts to you, but the uplift in sales usually more than compensates. Set prices to absorb the 1–2% conversion cost.