How it works
A transfer costs you twice: the fee you see, and the markup you don't. Providers convert your dollars at their own rate, which is usually below the mid-market rate banks trade at, and keep the difference. The calculator measures that difference against the European Central Bank's reference rate, a published stand-in for the mid-market rate, and adds the fee to show the real cost.
Real cost = fee + amount × (1 − their rate ÷ reference rate)
For live quotes, check the currency converter for today's reference rate and compare it with the rate a provider offers.
Worked example
You send $1,000 to Mexico. The reference rate on 2026-10-30 was 18.9080 pesos per dollar, and a provider offers 18.3408, 3% less, with a $5 fee.
Your family receives 18,341 MXN instead of 18,908 MXN. The fee is $5, but the rate costs another $30.00: $35.00 in total, or 3.5%. A provider charging no fee with a 0.5% markup would cost $5.00.
What sending money usually costs
The World Bank tracks the average cost of sending $200, fees and exchange-rate margin together, across the providers it surveys. From the U.S. it was 3.51% in 2023. By destination (from all sending countries):
| Sending $200 to | Average cost |
|---|---|
| Philippines | 1.67% |
| India | 1.76% |
| El Salvador | 2.00% |
| Pakistan | 2.14% |
| Colombia | 2.43% |
| Dominican Republic | 2.52% |
| Guatemala | 2.56% |
| Honduras | 2.62% |
| Mexico | 2.65% |
| China | 2.83% |
| Vietnam | 3.46% |
| Nigeria | 4.64% |
Source: World Bank, Remittance Prices Worldwide, 2023 annual averages. A quote well above these is worth shopping around.
Your rights in the U.S.
- You see the numbers first. Providers must tell you the exchange rate, fees and taxes, and the amount that will arrive, before you pay.
- You can cancel within 30 minutes of paying, for a full refund, as long as the money hasn't been picked up or deposited.
- Errors get investigated. Report a problem within 180 days; the provider must investigate and tell you the result within 90 days.
Questions people ask
What is the mid-market rate?
The midpoint between what banks pay and charge each other for a currency. It's the fairest yardstick for a quote. The ECB reference rate used here is published once a working day, so it can differ slightly from the rate at the moment you send.
Is a "no fee" transfer free?
Not if the exchange rate carries a markup. A zero-fee transfer at a 3% markup costs $30 on $1,000. Enter the rate you're quoted and the calculator shows the full cost.
Why is my currency missing?
The ECB publishes reference rates for about 30 currencies. For others, open "Reference rate" and type a mid-market rate from any source you trust; the calculation works the same.
Sources
- World Bank, Remittance Prices Worldwide: average cost of sending $200 (2023)
- Consumer Financial Protection Bureau: your rights when sending money abroad
- Consumer Financial Protection Bureau: Regulation E §1005.34, cancelling a remittance transfer
- European Central Bank reference rates, via Frankfurter
Reviewed September 29, 2026 by The Dollars World team. How we build and check our calculators · Our data and formulas. This is general information, not financial advice.