Currency Converter (Your Rate)
Currency Converter (Your Rate)
Convert an amount at the rate you are actually offered, and see what the bank’s or card’s markup and fees cost you against the mid-market rate — for remittances, money changers and card spends abroad.
Currency conversion at your rate
Sending 5,000 dirhams (A) home in rupees (B) at a mid-market rate of 26 (an example) with a 1.5% markup, no fee
Conversion at a marked-up rate
- mid
- the mid-market rate: units of B for 1 unit of A
- m
- the markup as a share of the mid-market rate; with a quoted rate q, m = 1 − q ÷ mid when you receive and q ÷ mid − 1 when you pay
- fee
- a flat fee in currency A, converted at the same rate
Worked example
Sending 5,000 dirhams (A) home in rupees (B) at a mid-market rate of 26 (an example) with a 1.5% markup, no fee
Your rate: 26 × (1 − 0.015) = 25.61
You receive 5,000 × 25.61 = 1,28,050.00 rupees
At the mid-market rate: 5,000 × 26 = 1,30,000.00
The markup costs 1,950.00 rupees, 1.5% of the amount
With a 20-dirham fee as well: 4,980 × 25.61 = 1,27,537.80
India: value on which GST is charged for currency exchange (CGST Rules, rule 32(2)(b))
| Rupee amount exchanged | Taxable value | Example |
|---|---|---|
| Up to 1,00,000 | 1% of the amount, at least 250 | 20,000 → 250; 1,00,000 → 1,000 |
| 1,00,000 to 10,00,000 | 1,000 + 0.5% of the amount over 1,00,000 | 5,00,000 → 3,000 |
| Over 10,00,000 | 5,500 + 0.1% of the amount over 10,00,000, at most 60,000 | 20,00,000 → 6,500 |
Mid-market rates, markups and what a conversion really costs
This converter does not fetch live rates. You enter them, because the rate that matters is the one you are actually given, and that is almost never the rate on the news. The mid-market rate is the midpoint between the price at which banks buy and sell a currency in the wholesale market. A bank, exchange house or card network gives you a worse rate than that — a lower one when you sell a currency, a higher one when you buy — and the gap, the markup or spread, is its charge, often on top of a fixed fee. In India the Financial Benchmarks India (FBIL) reference rates, published each business day, are a public benchmark for the rupee against the major currencies.
Remittances from the Gulf. For money sent home — dirhams, riyals or dinars into rupees, rupees or taka — compare offers by what arrives, not by the fee alone. A transfer with no fee and a wider spread can deliver less than one with a small fee and a rate close to mid-market. In the example, a 1.5% markup on 5,000 dirhams at 26 costs 1,950.00 rupees — a cost that never appears as a fee. Enter each provider’s quoted rate and fee and compare the amount received and the effective rate. The rates used here are examples, not today’s market.
Card spends abroad. When you pay in a foreign currency, the card converts the price and usually adds a foreign-currency markup as a percentage of the converted amount; choose “paying a price” so the markup is added rather than taken off. The markup differs by card and bank, so read the Most Important Terms and Conditions (MITC) your issuer must publish. Paying in your home currency at a merchant’s terminal (dynamic currency conversion) can cost more than the card’s own conversion — the rate is the merchant’s.
GST in India. Buying or selling foreign currency through an Indian bank or money changer attracts GST, charged not on the whole amount but on a deemed value. Under rule 32(2)(b) of the CGST Rules that value is 1% of the rupee amount up to ₹1 lakh (at least ₹250), ₹1,000 plus 0.5% of the amount above ₹1 lakh up to ₹10 lakh, and ₹5,500 plus 0.1% above ₹10 lakh, capped at ₹60,000; the table has examples. The tax itself is on your bank’s advice. Separate tax rules on sending money abroad from India change often and are not covered here.
For percentage arithmetic see the percentage calculator; for GST on goods and services, the GST calculator. This is arithmetic on the figures you enter, not financial advice.
Frequently asked questions
What is the mid-market exchange rate?
The midpoint between the wholesale buying and selling rates for a currency. Banks and money changers quote you a rate on either side of it; the difference is their markup.
How do I work out the markup in an exchange rate?
When you receive currency, markup = (1 − quoted rate ÷ mid-market rate) × 100. Quoted 25.61 against a mid-market 26 is a 1.5% markup. Choose “I know the rate I’m quoted” and the page shows it.
How much do cards charge on foreign-currency spends?
It varies by card. The foreign-currency markup and any fee are in your card’s Most Important Terms and Conditions (MITC), which RBI requires issuers to give you.
Is GST charged on currency exchange in India?
Yes, on a deemed value rather than the whole amount: under CGST rule 32(2)(b), 1% of the rupee amount up to ₹1 lakh (at least ₹250), with lower slabs above that and a cap of ₹60,000 on the value.
Does this converter show live exchange rates?
No. You enter the mid-market rate and the rate you are offered, so the result reflects the deal in front of you.
Related calculators
References
- Central Goods and Services Tax Rules, 2017, rule 32(2): (a) value of a currency exchange to or from Indian rupees is the difference between the buying or selling rate and the RBI reference rate, × the units of currency; or (b), at the supplier’s option, 1% of the gross amount of rupees for up to ₹1,00,000 (at least ₹250); ₹1,000 + 0.5% of the amount over ₹1,00,000, up to ₹10,00,000; ₹5,500 + 0.1% of the amount over ₹10,00,000, capped at ₹60,000.
- Reserve Bank of India. Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022 (21 April 2022, as amended): card-issuers must give the Most Important Terms and Conditions (MITC), which set out the fees and charges, including those on foreign-currency transactions.
- Financial Benchmarks India Pvt. Ltd. (FBIL). Reference rates for USD/INR and other major currencies, published each business day; the benchmark administrator since July 2018, when it took over from the RBI reference rate.