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How to Calculate the Markup Cost on a Bad Exchange Rate Exchange rate margin

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The market exchange rate is , but the exchange office only offers me . If I exchange $ ...
How much is the markup, and what does it cost me?

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Answer: The markup costs you $ in the currency you receive (a 3.64% markup).

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
For informational purposes only.

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App updated: August 2026