mathsolvers.io
Real-World Maths

Currency & Holiday Money Calculator

Find out exactly what you get when you exchange money — and how much the rate, spread and commission are really costing you compared to the true mid-market rate.

CURRENCY & HOLIDAY MONEY CALCULATOR

£
From
To
MKT
Look this up on Google or xe.com — search "GBP to EUR". This is the real rate before any fees.
OFF
The rate the bureau, bank or airport is actually giving you.
%
Enter 0 if no commission is charged — but a "0% commission" deal usually means a worse rate instead.

Step-by-step solution

Currency & Holiday Money Calculator Explained

Core concepts, classroom applications, and plain-English explanations for all audiences.

When would you actually use this?

Every time you go on holiday abroad. If you exchange £500 at an airport bureau at 1.08 EUR/£ instead of the mid-market rate of 1.22, you get €540 instead of €610 — a loss of €70 (about £57). That's the price of a meal out, just from picking the wrong exchange desk.

Worked example

"Exchanging £500 to euros. Bureau offers 1.14. Mid-market rate is 1.22. What's the true cost?"

Bureau gives: £500 × 1.14 = €570

Mid-market: £500 × 1.22 = €610

Loss: €610 − €570 = €40 (about £33) lost to the poor rate

Effective rate loss: (1.22 − 1.14) ÷ 1.22 = 6.6% effective fee

Airport bureaux typically charge the equivalent of 6–12% on top of the mid-market rate.

How exchange rates work

  • → Mid-market rate: The true exchange rate between currencies — what you see on Google or XE.com
  • → Offered rate: What a bureau or bank gives you — always worse than mid-market; that's how they profit
  • → Spread: The gap between buy and sell rates — the wider it is, the more you lose

Order matters — don't reverse it

Converting £ → € uses one rate; converting the euros back to pounds uses a worse rate. Double-converting (buying then selling back) typically costs 10–15%. Always plan to spend what you buy, not reconvert it.

Good to know

How currency exchange really works

Classic trap
"0% commission" doesn't mean free
When a bureau advertises 0% commission, they still make money — by giving you a worse exchange rate than the mid-market rate. The gap between what you get and the real rate is their fee. Always compare the actual rate against the mid-market rate.
Mid-market: 1.22
Offered rate: 1.15 (0% commission)
Hidden cost on £500: £28.69
Where to find the mid-market rate
Search "GBP to EUR" on Google — the rate shown is the mid-market (interbank) rate. XE.com shows the same. This is the wholesale rate banks use between themselves. No retail customer gets this rate exactly, but it's your benchmark for judging how fair an offer is.
Search: "500 GBP in EUR"
Google shows the mid-market result
Compare to what you're offered
Airports are the worst place to exchange
Airport bureaux de change typically offer rates 8–15% worse than the mid-market rate, knowing travellers are captive and time-pressured. Order currency in advance from your bank or a specialist service, or use a fee-free travel card instead.
£500 at airport (1.08): €540
£500 at bank (1.20): €600
Difference: €60
Dynamic currency conversion: always say no
When paying by card abroad, you may be asked "pay in pounds or euros?" — always choose the local currency. Paying in pounds (Dynamic Currency Conversion) lets the merchant set the exchange rate, which is almost always significantly worse than your bank's rate.
Pay in local currency: bank rate applies
Pay in GBP: merchant rate applies
Merchant rate is typically 3-7% worse