GeraCash / Exchange Rate Markup Calculator
Exchange Rate Markup Calculator
The biggest cost of changing money is usually not the "fee" you are shown — it is the markup hidden inside the exchange rate. Enter the mid-market rate, the rate you were quoted and your amount to see the markup as a percentage and in money, plus the Gera FX Fairness Band.
How do I calculate the exchange-rate markup (hidden fee) on a currency conversion?
The exchange-rate markup is the gap between the mid-market rate (the "real" rate currencies trade at) and the rate you are actually quoted, as a percentage of the mid-market rate: markup% = |mid − quoted| ÷ mid × 100. Multiply your send amount by that percentage to get the hidden cost baked into the rate — often larger than any upfront "fee".
Calculate your exchange-rate markup
Look up the mid-market rate for your currency pair, enter the rate you were quoted, and your amount. Everything is computed from the numbers you type — nothing is stored.
Enter the mid-market rate, the rate you were quoted, and an amount to see the markup percentage, the hidden cost, and the Gera FX Fairness Band. Tip: look up the mid-market rate by searching "source currency to target currency" — that figure is the real rate before any markup.
This calculator uses only the numbers you enter. The Gera FX Fairness Band is Gera's own plain-English rubric for reading a markup, not a regulated standard. Information only, not financial advice.
A worked example
Suppose the mid-market rate for a pair is 105.00 and you are quoted 102.90 on a 1,000-unit transfer. The markup is |105.00 − 102.90| ÷ 105.00 × 100 = 2.00% — a hidden cost of about 20.00 units, on top of any upfront fee. (Round numbers for illustration, not a live rate.)
The Gera FX Fairness Band
Gera's own plain-English rubric for reading a markup at a glance. It is an editorial guide, not a regulated standard.
| Band | Markup range | What it means |
|---|---|---|
| Excellent | 0% – 0.5% | Within half a percent of the mid-market rate — close to the rate banks trade at between themselves. |
| Good | 0.5% – 1% | A modest markup. Competitive for most everyday transfers and card spending abroad. |
| Fair | 1% – 2% | A noticeable markup. Worth comparing one or two alternatives before you commit a large amount. |
| Costly | 2% – 4% | A high markup. On larger amounts this hidden cost can dwarf any upfront "fee" you were shown. |
| Poor | over 4% | A very expensive rate. Common at airport kiosks, some travel-money desks and certain card schemes. |
How to calculate the markup, step by step
- Look up the mid-market rate. Search the currency pair (for example "USD to MXN") to find the mid-market rate — the real rate before any markup.
- Note the rate you were quoted. Find the exchange rate the bank, app, or kiosk is actually offering you for the same pair.
- Apply the markup formula. markup% = |mid − quoted| ÷ mid × 100. Multiply your send amount by that percentage to get the hidden cost in your sending currency.
- Compare the total that arrives. Add any upfront fee to the markup cost, then compare the final amount received against another provider before you commit.
Markup guides by currency corridor
The same calculator, with context on the local payment rails for popular corridors:
Frequently asked questions
- What is an exchange-rate markup?
- An exchange-rate markup is the difference between the mid-market rate — the rate banks trade at between themselves, and the one you see on Google or a currency-data site — and the rate a bank, app, or kiosk actually offers you. It is expressed as a percentage of the mid-market rate. Because it is built into the rate rather than shown as a line-item fee, many people never notice it.
- How do I calculate the markup percentage?
- markup% = |mid-market rate − quoted rate| ÷ mid-market rate × 100. For example, if the mid-market rate is 105.00 and you are quoted 102.90, the markup is |105.00 − 102.90| ÷ 105.00 × 100 = 2.00%. On a 1,000-unit transfer that is a hidden cost of about 20 units in the currency you are sending. Use the calculator above with your own figures.
- What is the mid-market rate?
- The mid-market (or "interbank") rate is the midpoint between the buy and sell prices for a currency pair in the wholesale market. It is the rate with no markup added. You can look it up by searching the currency pair (for example "GBP to INR") on any major search engine or currency-data site. Comparing your quote against it reveals the markup.
- Is a low advertised fee always cheaper?
- Not necessarily. A provider can advertise "zero fees" or a small flat fee while applying a wide exchange-rate markup, which on a larger amount can cost far more than a transparent fee plus the mid-market rate. Always compare the total amount that actually arrives at the destination, not just the upfront fee.
- What is the Gera FX Fairness Band?
- The Gera FX Fairness Band is Gera's own plain-English rubric for reading an exchange-rate markup: Excellent (under 0.5%), Good (0.5–1%), Fair (1–2%), Costly (2–4%), and Poor (over 4%). It is an editorial guide to help you judge a quote at a glance — not a regulated standard or a guarantee about any provider.
- Does GeraCash convert currency today?
- No. GeraCash is pre-launch and operates a waitlist only; it is planned to launch in 2027 with a licensed payment partner. This calculator is a free educational tool you can use with any provider — it works entirely on the numbers you enter.
Want the mid-market rate, with the markup shown up front?
GeraCash is building a multi-currency account designed around transparent, mid-market-based rates. Join the waitlist for early access when it launches.
Related
- Gera FX Fairness Band — full methodology — the exact formula and band thresholds
- Exchange-rate markup explained — the concept in depth
- UK inflation calculator — the value of money over time
- UK interest rate today — the Bank of England base rate
Information only, not financial advice. GeraCash is pre-launch (waitlist only) and is planned to launch in 2027 with a licensed payment partner.