Remittance Cost Calculator
International remittances involve two types of charges: a fixed transfer fee and an exchange rate margin. Many providers advertise low fixed fees but recoup revenue through an FX margin embedded in the exchange rate. This calculator shows both costs separately and calculates how much the recipient actually receives after all charges. Enter the send amount in USD, the transfer fee, the mid-market exchange rate (available from the Federal Reserve), and the provider's FX margin percentage.
Remittance cost formula
Applied rate = mid-market rate x (1 - FX margin / 100)
Convertible amount = send amount - transfer fee
Recipient receives = convertible amount x applied rate
FX margin cost (USD) = convertible amount x (FX margin / 100)
Total cost = transfer fee + FX margin cost
Effective cost% = total cost / send amount x 100
The FX margin cost is calculated on the convertible amount (after deducting the transfer fee), consistent with how most providers apply the margin.
Understanding remittance pricing
- The World Bank's Remittance Prices Worldwide database tracks the cost of sending $200 to over 200 country corridors quarterly.
- Under CFPB Regulation E Subpart B, US providers must disclose exchange rates and fees before you send.
- An effective cost above 5% is considered high by World Bank standards; the SDG target is 3%.
- Speed of transfer varies: instant mobile transfers often carry higher margins than next-day bank transfers.
Frequently asked questions
What is an FX margin in a remittance?
The FX margin is the percentage difference between the mid-market exchange rate and the rate your provider applies. A 2% margin on $500 costs $10 hidden inside the exchange rate, even if the provider advertises no fees.
How does this differ from the currency conversion fee calculator?
The remittance calculator focuses on what the recipient receives in the destination currency, incorporating the exchange rate and all costs. The currency conversion fee calculator measures the cost in the sending currency only.
What is the G20 target for remittance costs?
The G20 and World Bank set a target of reducing the global average cost of remittances to 3% of the transferred amount by 2030 under the Sustainable Development Goals (SDG 10.c). The World Bank publishes quarterly Remittance Prices Worldwide data.
How is the amount received by the recipient calculated?
Recipient receives = (send amount - fixed fee) x exchange rate applied, where the applied rate = mid-market rate x (1 - FX margin/100). The fixed fee is deducted first, then the remainder is converted.
Should I compare providers before sending?
Yes. The CFPB requires US-licensed remittance transfer providers to disclose all fees and the exchange rate to consumers before the transfer is made, under the Electronic Fund Transfer Act (Regulation E, 12 CFR Part 1005 Subpart B).
Official sources
- World Bank Remittance Prices Worldwide: remittanceprices.worldbank.org.
- CFPB, International Money Transfers (Regulation E Subpart B): consumerfinance.gov/send-money-internationally/.
- Federal Reserve Foreign Exchange Rates (H.10): federalreserve.gov/releases/h10/.
Reviewed by the CalculatorHub team, edited by James Graham, 15 June 2026. See our methodology.