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.
I wonder what it costs me to change money and then change it straight back. Say I change $1,000 into euros at 0.92. That gets me €920.
Now say I change it back at 1.06. That's $975.20.
So I'm $24.80 down, which is 2.48% of what I started with, just for going out and back.
If I did that every month, it's $297.60 a year.
That's the price of switching currency twice.
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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.
How it's worked out
- The amount you get is what you start with times the rate you convert at.
- What you get back is that amount times the rate you convert back at.
- What you lose is the start amount minus what you get back.
Start with 1,000 and convert at 0.92 to get 920. Convert back at 1.06 and you get 975.20, so you lose 24.80, about 2.5% of what you started with.
Common mistakes
- Comparing what you were offered with the rate you see on a search engine. That is the middle rate, not one you can get.
- Forgetting fees, which come off on top of the gap between the two rates.
- Changing money back and forth. You lose a little each time.
- Not checking the rate before you exchange. Airport and hotel desks are often the worst.
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.
What does the effective rate mean?
It is what you get back divided by what you started with. If you start with 1,000 and get back 975.20, the effective rate is 0.9752, so you keep about 97.5% of your money.
Grief-processing the exchange rate. A few minutes off.