What is the mid-market rate?
The mid-market rate is halfway between the price banks buy and sell a currency for on the wholesale market. It's the rate you see on Google, Reuters or XE. Almost no consumer service gives you exactly this rate. Most add a markup: they convert at a slightly worse rate and keep the difference. Because it's built into the rate, the markup rarely appears as a "fee", which is why a transfer advertised as "no fee" can still be expensive.
How the cost is calculated
Total cost = Ideal amount − Amount that arrived
Cost % = Total cost ÷ Ideal amount × 100
Effective rate = Amount that arrived ÷ Amount sent
Example: a client pays you $1,000. The mid-market rate is ₹88.50, so the ideal amount is ₹88,500. ₹86,100 arrives in your bank. The total cost is ₹2,400, or 2.71%, and the effective rate is ₹86.10 per dollar.
In Check a quote mode, enter the provider's offered rate and fees before you send. The calculator splits the cost into the visible fee and the hidden markup (the gap between the offered and mid-market rate).
Where the costs hide
| Cost | Where you'll see it |
|---|---|
| Exchange-rate markup | Only by comparing the rate used with the mid-market rate at that moment |
| Transfer or withdrawal fee | On the platform's statement |
| Intermediary (correspondent) bank fees | Deducted along the way on SWIFT wires; the amount arriving is smaller than the amount sent |
| Receiving bank charges | Some banks charge for inward remittances |
| Tax on conversion | In India, GST applies to currency conversion: on ₹1 lakh converted, the GST is ₹180 |
How to pay less
- Compare the total, not the fee. Use this calculator on the actual amount that arrives, or on two quotes side by side.
- Check rates at the same moment. Rates move all day; compare the provider's rate with the mid-market rate at the time of conversion.
- Avoid double conversion. Being paid in USD, converted to EUR, then to INR costs two markups. Hold or receive in the original currency where you can.
- Batch small payments. Fixed fees hurt most on small amounts.
- Invoice in the client's currency if they're paying by card or a local transfer; the invoice generator supports 46 currencies.
Frequently asked questions
What is a good exchange rate markup?
Where do I find the mid-market rate?
Why is the amount I received less than the amount sent times the rate?
Does the markup matter for my tax return?
Last updated . How we check our tools.