Exchange Rate Calculator
Convert between pounds and another currency at the rate you have been quoted, and see what the provider's fees and margin really cost you.
- Free, no sign-up
- Runs in your browser, nothing is stored
- Formula and worked example included
Currency Conversion and Fee Calculator
Enter your figures to see results.
How many euros or dollars will I actually get?
The rate on the news is not the rate you get. Banks and brokers add a margin to the rate and often a fee on top, so £10,000 sent to a supplier at 1.1650 with a 0.5% fee lands as about €11,592, not the €11,900 the mid-market rate suggests. Enter the rate you have been quoted and any fees to see the real figure and the effective rate.
How to use this calculator
- Choose whether you are sending pounds or receiving them.
- Enter the amount and the exchange rate your provider has actually quoted.
- Add any percentage or fixed fee to see the amount received and the effective rate after charges.
What your result means
How to read the figure, what counts as normal, and what to do about it.
The rate you see is not the rate you get
The exchange rate on the news is the interbank or mid-market rate. Nobody outside a bank trades at it. Your provider adds a margin to the rate (often 1–4% at a high-street bank, 0.3–1% at a specialist) and may charge a fee on top. Because the margin is hidden inside the rate, the only reliable way to compare providers is to ask each how much of the other currency you will receive for the same amount, after all charges. That is what this calculator shows.
Managing currency risk in a small business
- Quote in your own currency where customers will accept it; the risk moves to them.
- Hold a foreign currency account if you both receive and pay in that currency, and convert only the net balance.
- Use forward contracts for large known payments; they fix today's rate for a future date at little or no cost.
- Avoid dynamic currency conversion when paying by card abroad: choosing "pay in pounds" at the terminal almost always uses a worse rate.
- Check invoices against the rate on the day for VAT purposes: HMRC requires sterling equivalents using an acceptable published rate on the tax point date.
Worked example: paying a European supplier
A retailer needs to pay a supplier €10,000. Its bank offers 1.1650 euros to the pound with a 0.5% fee; the mid-market rate that morning is 1.1900.
Pounds needed before fees: 10,000 ÷ 1.1650 = £8,583.69. With the 0.5% fee (£42.92), the cost is £8,626.61.
At the mid-market rate the euros would cost £8,403.36, so the true cost of the transfer is about £223, or 2.7%. A specialist offering 1.1830 and no fee would cost £8,453.08, a saving of £173 on one payment. Across a year of monthly payments that is more than £2,000.
Frequently asked questions
Where do I find the mid-market rate?
Any financial news site, or the European Central Bank and Bank of England reference rates. Compare your provider's quote with it to see the hidden margin.
Which exchange rate do I use for my VAT return?
HMRC accepts the UK market selling rate at the time of supply, HMRC's own published monthly rates, or the ECB rate. Use one method consistently.
Is it cheaper to pay in pounds or the foreign currency?
Almost always the foreign currency, using a provider you have chosen. Letting a foreign supplier or card terminal convert for you means accepting their rate, which is rarely competitive.
What is a forward contract?
An agreement with a bank or broker to exchange a fixed amount at a fixed rate on a future date. It removes the risk of the rate moving against you between agreeing a price and paying it, at the cost of losing any benefit if the rate moves in your favour.
The maths behind this calculator
For anyone who wants to check the working or rebuild it in a spreadsheet.
The formulas
Pounds to foreign: Converted = Amount × Rate Foreign to pounds: Converted = Amount ÷ Rate Fees = Converted × Fee % + Fixed fee Amount received = Converted − Fees Effective rate = Amount received ÷ Amount sent (or the reverse)
The effective rate is the number to compare between providers. To see the total cost against the market, compare it with the mid-market rate: a quoted 1.1650 against a mid-market 1.1900 is a 2.1% margin before any fee.
Assumptions and limits
- The rate you enter is the provider's actual quoted rate. The calculator cannot fetch live rates; it is a comparison tool, not a price feed.
- Percentage fees are charged on the converted amount and fixed fees are in the currency received. Some providers charge in the sending currency; adjust accordingly.
- Receiving-bank charges, intermediary bank fees on SWIFT payments, and any card scheme fees are not included unless you add them as a fixed fee.
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