Transfer Rate Formula:
From: | To: |
Definition: This calculator determines the effective rate of a money transfer by comparing the amount received to the amount sent.
Purpose: It helps individuals and businesses evaluate the cost-effectiveness of different money transfer services.
The calculator uses the formula:
Where:
Explanation: The formula shows what percentage of the sent amount is actually received after all fees and exchange rates.
Details: Comparing transfer rates helps identify the most cost-effective service, potentially saving significant money on international transactions.
Tips: Enter the amount you sent and the amount that was received. The sent amount must be greater than zero.
Q1: What does a 98% transfer rate mean?
A: It means for every 100 units you sent, the recipient received 98 units (2% was lost to fees and exchange rates).
Q2: How can I improve my transfer rate?
A: Compare different providers, look for special promotions, or send larger amounts which often have better rates.
Q3: Why is my rate less than 100%?
A: The difference accounts for transfer fees, exchange rate margins, and any intermediary bank charges.
Q4: Should I always choose the highest rate?
A: While rate is important, also consider transfer speed, reliability, and customer service when choosing a provider.
Q5: Does this include all hidden fees?
A: Yes, the rate calculation reflects the total cost including all fees and exchange rate differences.