Remittance Cost Calculator United States

What the remittance cost calculator does

The calculator adds the transfer fee you see at checkout to the exchange-rate markup, which is harder to spot, and expresses the total as a percentage of the amount you send. It also shows how much money lands in your recipient's account. Enter the amount you want to send, the provider's fee, its markup as a percentage below the mid-market rate, and the current mid-market rate for the currency pair. If you are paying with cash, a money order, or a cashier's check, add the federal remittance tax described below; this calculator does not include it.

A transfer with no fee can cost more than one with a visible charge if its exchange rate is worse.

The federal remittance tax on cash transfers

Since January 1, 2026, a 1% federal excise tax applies to remittance transfers under Internal Revenue Code Section 4475, created by the One Big Beautiful Bill Act. It applies only when you fund the transfer with cash, a money order, a cashier's check, or a similar physical instrument. Transfers funded from a US bank account, a US debit card, or a US credit card are exempt. The provider collects the tax and pays it to the IRS, so a cash-funded transfer costs roughly 1% more than this calculator shows.

Fees and exchange-rate markups

Apart from any remittance tax, a money transfer service typically charges in two ways. The transfer fee is a flat charge, often a few dollars, stated at checkout and easy to compare.

The exchange-rate markup is usually where most of the cost sits. Providers rarely give you the mid-market rate quoted on financial websites. They add a margin, give you a slightly worse rate and keep the difference. Because the margin is inside the rate and not shown as a fee, many people never notice it. A transfer paid out in US dollars has no exchange-rate markup.

Before you send more than $15 abroad, federal law (Regulation E, 12 CFR 1005.30-1005.34) requires most providers to disclose the exchange rate, all fees and taxes, and the total amount the recipient will get, before you pay. That disclosure is the most reliable place to find the numbers to enter. If a provider does not state its markup, divide the gap between its quoted rate and the mid-market rate by the mid-market rate to get the percentage.

How the calculation works

• It takes the transfer fee off the top of the amount you send.
• It converts the remaining amount at the provider's marked-up rate.
• It calculates the markup cost as the amount converted multiplied by the markup percentage.
• It adds the fee and the markup cost to find the total cost of the transfer.
• It shows the rate you actually receive and the amount that reaches your recipient in the destination currency.

Some providers add the fee after conversion, which changes the result slightly. The total as a percentage of the amount sent lets you compare a large transfer with a small one, or one provider with another, on equal terms.

Why the markup often matters more than the fee

For small transfers, a flat fee is most of the cost. For larger transfers the markup usually outweighs the fee, because the markup grows with the amount while the fee stays fixed. A 2% markup on a large sum can be many times a modest flat fee, and it never appears as a line item.

So comparing providers on advertised fees alone is misleading. A service promoting free transfers may recover far more through the exchange rate than a competitor charging a visible fee with a fair rate. Enter the mid-market rate and the markup for each option to rank providers on what you will pay.

Markups also vary by corridor. Competition is strongest between major currency pairs, such as US dollars to euros, which tends to keep markups thin. Smaller or less liquid currency pairs often carry wider ones, sometimes several percent, because fewer providers compete there. If you send to such a destination, check the markup even more closely than the fee, and compare two or three providers for the same corridor.

Reading your result

The output separates the fee from the markup cost, then gives the total cost and the total as a percentage of the amount sent. It also shows the effective exchange rate you receive and the amount delivered to your recipient in the destination currency. Add roughly 1% if you are paying with cash, a money order, or a cashier's check.

A cost of 2.5% sounds small, but on a large or recurring transfer it adds up quickly. If you send money abroad regularly, whether to support family, pay overseas invoices or fund a foreign account, small differences per transfer become a large sum over a year. Run each option through the calculator and check your provider's Regulation E disclosure before you commit.

This is general information only and not financial advice. Fees, exchange rates, and tax rules change frequently, so confirm current figures with each provider before sending.

About This Remittance Cost Calculator

Use this remittance cost calculator to get an instant estimate based on the figures you enter. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.