Type of calculation: Comparing the market rate to the
rate you are offered to find the percentage markup and what it costs you in the currency you receive.
How to use the calculator: Use the
Percentage Change Calculator to find how far the offered rate sits below the market rate.
The formula:
Exchange rate margin % = ((Market rate - Offered rate) / Market rate) × 100
Markup % = ((
1.1 −
1.06) /
1.1) × 100
= (
0.04 /
1.1) × 100
≈ 3.64%
At the market rate you would receive: $
1000 ×
1.1 = 1100
At the offered rate you actually receive: $
1000 ×
1.06 = 1060
Cost of the markup
= 1100 −
1060 = 40 