When a client abroad pays you $2,000, you never get exactly $2,000 times the exchange rate on Google. Payment platforms take a percentage or fixed fee, and many also give you a worse rate than the real one, the hidden cost called markup.
This calculator shows what reaches your bank and lets you compare two providers side by side.
Fees vs exchange-rate markup
The mid-market rate is the real rate banks trade at, the one you see on Google or Reuters. Providers make money in two ways:
- Visible fees: a percentage of the payment, a fixed fee per transfer, or both.
- Rate markup: the provider converts at a rate a little below mid-market and keeps the difference. A 2% markup on ₹88 means you get about ₹86.24 per dollar.
Rate you get = mid-market rate × (1 − markup %)Dollars converted = amount − percentage fee − fixed feeRupees received = dollars converted × rate you getWorked example
Example: $2,000 at a mid-market rate of ₹88
Option A: 0.5% fee, no markup. You receive ₹1,75,120, a cost of ₹880.
Option B: no percentage fee, but $25 fixed plus a 2% markup. You receive ₹1,70,324, a cost of ₹5,676.
Option B looks free at first glance but costs over six times as much.
Getting paid from abroad: practical tips
- Compare the total rupees received, not the advertised fee.
- Ask the provider for a FIRA (Foreign Inward Remittance Advice) for each payment. It's your proof of export of services for GST and tax.
- Make sure the payment is tagged with the right purpose code for your service, such as software or consulting.
- For regular clients, larger and less frequent transfers cut fixed fees.
- Your rupee receipts are your income for tax. See the Section 44ADA calculator.
Exchange rates change by the minute. Enter today's mid-market rate for an accurate result.
How to use this calculator
- Enter the amount your client pays and today's mid-market rate.
- Enter each provider's percentage fee, fixed fee and rate markup.
- Compare what you receive.
FAQs
What is an exchange-rate markup?
The gap between the real (mid-market) rate and the rate a provider gives you. A 2% markup on $1,000 at ₹88 costs about ₹1,760.
What is a FIRA?
A Foreign Inward Remittance Advice: a record from your bank or payment provider showing money received from abroad. It helps with tax and GST records.
Results are estimates for resident individuals under 60 and aren't tax, legal or financial advice. For your own return, check with a chartered accountant. Spotted a mistake? Tell us.