Currency Round-Trip Loss Calculator
Enter the exchange rates for converting out and converting back, and see how much you lose in the round trip. Useful for freelancers invoicing in foreign currencies, or anyone holding foreign cash.
Rate your bank or exchange offered going out.
Rate you get converting back. Check today's rate from your bank.
Every time you convert currency, the exchange rate is slightly worse than the mid-market rate. Do it twice, and those losses compound. This tool shows the real cost.
Banks and currency exchanges make money on the spread between the buy and sell rate. A typical bank charges 2-4% on each leg of a conversion. Over a round trip that can mean losing 5-8% of your original amount. For freelancers who invoice in USD but spend in GBP, or anyone returning home with foreign cash, this adds up quickly.
How we work it out
The converted amount is your starting amount multiplied by the buy rate. The returned amount is the converted amount multiplied by the sell rate. The loss is the starting amount minus the returned amount. The effective round-trip rate is the returned amount divided by the starting amount.
Questions
Where do I find the exchange rates?
Your bank or currency exchange will show you the rate at the point of conversion. It is worth checking the mid-market rate (Google or XE.com) first so you can see how much the spread is costing you on each leg.
Why not just use the mid-market rate?
The mid-market rate is the theoretical fair rate, but no bank or exchange will give you that. They make their profit on the spread. The actual rates you get will always be worse than mid-market in both directions.
How can I reduce the round-trip loss?
Use a multi-currency card or account (Wise, Revolut) that offers rates closer to mid-market. Avoid airport exchanges and hotel desks. Check the total fee including any flat transaction charges, not just the quoted rate.
Grief-processing the exchange rate. A few minutes off.