Sending money to family abroad shouldn't cost a fortune. This calculator reveals the true cost of international money transfers by showing exactly how much your recipient will receive after all fees and exchange rate markups.
How This Calculator Works
This calculator exposes the real cost of remittances:
- Send Amount: How much you want to transfer in your currency
- Source Currency: Your local currency (USD, EUR, etc.)
- Destination Currency: The currency your recipient needs
- Transfer Fee: Flat fee charged by the service
- Exchange Rate Markup: Hidden margin added to the mid-market rate
- Amount Received: What actually arrives after all deductions
The Formula Explained
Net Send Amount = Send Amount - Transfer Fee
Effective Rate = Mid-Market Rate Ă— (1 - Markup Percentage)
Amount Received = Net Send Amount Ă— Effective Rate
Services advertising "no fees" often compensate with larger exchange rate markups.
Step-by-Step Example
Maria Sends $500 to Mexico
| Transfer Service | Fee | Markup | MXN Received |
| Bank Wire | $45 | 4% | 7,795 MXN |
| Traditional Remittance | $10 | 2.5% | 8,370 MXN |
| Online Service A | $4 | 0.5% | 8,915 MXN |
| Online Service B | $0 | 1.5% | 8,850 MXN |
Best option delivers 1,120 MXN more ($65+ difference) for the same $500 sent!
Frequently Asked Questions
How do remittance companies make money?
Remittance companies profit through two main channels: (1) Explicit transfer fees ($5-50 per transaction), and (2) Exchange rate markups—adding 1-5% to the mid-market rate. A company claiming "zero fees" often takes 2-3% in the exchange rate instead. Always calculate the total cost.
What is the mid-market rate and why does it matter?
The mid-market rate (also called interbank rate) is the midpoint between buy and sell rates on global currency markets—the "true" exchange rate. It's what banks use between themselves. Remittance services never give you this rate; they add a markup. The closer to mid-market, the better the deal.
Which remittance service offers the best rates?
Rates vary by corridor (country pair) and change frequently. Generally, online services (Wise, Remitly, WorldRemit) beat traditional operators (Western Union, MoneyGram), which beat banks. Always compare 3-4 services for your specific corridor. The cheapest for USA→Mexico may not be cheapest for UK→Philippines.
How long do international transfers take?
Transfer times range from minutes to 5 business days depending on method and destination. Mobile wallet and cash pickup are often instant. Bank deposits take 1-3 days. Wire transfers take 3-5 days. Faster usually costs more. Compare speed vs. cost based on urgency.
Is sending money online safe?
Licensed money transfer services are regulated and secure. Look for companies licensed by FinCEN (USA), FCA (UK), or equivalent regulators. Major online services use bank-level encryption and fraud protection. Avoid unregistered services or informal channels—they offer no recourse if money disappears.
What identification do I need to send money?
Most services require government-issued ID (passport, driver's license) and your contact information. For larger amounts ($3,000+), you may need to verify your address and funding source (anti-money laundering requirements). First-time transfers usually require full verification; subsequent transfers are faster.
How can I reduce remittance costs?
To minimize costs: (1) Send larger amounts less frequently (fees often fixed per transaction), (2) Use online services rather than physical agents, (3) Compare rates each time—best service changes, (4) Avoid cash pickup when bank deposit is possible, (5) Send during weekdays when rates are more stable.
Are there limits on how much I can send?
Yes, limits vary by service and verification level. Unverified accounts may be limited to $1,000-$2,500 per transfer. Fully verified accounts can typically send $10,000-$50,000 per transfer. Annual limits may apply. Very large transfers should go through banks or specialized services.
Key Points to Remember
- Compare total cost: Fee + exchange rate markup = true cost
- Check the mid-market rate: Google "USD to MXN" shows the real rate
- Send smart: Larger, less frequent transfers cost less proportionally
- Verify services: Only use licensed, regulated money transfer companies
- Track transfers: Get confirmation numbers and track delivery