Currency Spread Cost
Measure the cost of the buy-sell spread in a currency transaction.
About Currency Spread Cost
The spread is the gap between the rate you buy at and the rate you sell at, which is how currency providers profit. Multiplying the spread by the transferred amount gives the hidden cost. A wide spread silently raises the cost of every currency transfer, so comparing providers on spread matters as much as the headline rate.
Formula
Currency Spread Cost
Spread = buy rate - sell rate; cost = amount x spread
- spread
- difference between buy and sell rates
Worked example
With the default values below, Currency Spread Cost returns Spread of 0.0300. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Transfer amount
- 5,000
- Buy rate
- 0.92
- Sell rate
- 0.89
Results
- Spread
- 0.0300
- Mid-Market Rate
- 0.9050
- Spread Cost
- $150.00
Step by step
- 1Values used
- 2Currency Spread Cost
- 3Spread= 0.0300
- 4Mid-Market Rate= 0.9050
- 5Spread Cost= 150.00
Assumptions and limits
- The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
- Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- Rates vary by provider and fluctuate; the estimate is for comparison only.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Rates vary by provider and fluctuate; the estimate is for comparison only.
Frequently Asked Questions
How is Currency Spread Cost calculated?
Spread = buy rate - sell rate; cost = amount x spread The spread is the gap between the rate you buy at and the rate you sell at, which is how currency providers profit. Multiplying the spread by the transferred amount gives the hidden cost.
Why does Currency Spread Cost matter?
A wide spread silently raises the cost of every currency transfer, so comparing providers on spread matters as much as the headline rate.
What values do I need to enter?
This calculator takes 3 inputs: Transfer amount, Buy rate, Sell rate. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.