What this planner works out
This planner converts a sterling budget into foreign currency at your exchange rate, then reduces it by an allowance for card and conversion fees.
The fee allowance is what distinguishes this from a plain conversion. The rate you are quoted is rarely the rate you receive.
Enter your details
Before you convert
- Use a realistic rate, not the mid-market rate quoted in the news. Consumer rates are always worse.
- The fee allowance should cover whatever you will actually pay — a foreign transaction fee, a cash machine charge, or a bureau's margin.
- Fee-free travel cards exist and change the arithmetic substantially. A 3% allowance on £800 is £24.
- Never accept conversion to pounds at a foreign terminal. It always costs more.
The mid-market rate is the midpoint between buying and selling prices in the wholesale market, and no consumer gets it. Providers make money either through an explicit fee, a worse rate, or both — and a service advertising 'no commission' is usually taking its margin in the rate instead. Comparing the actual amount received, rather than the headline rate or fee, is the only reliable test.
How this calculator works
Conversion, less fees:
Foreign currency = budget × units per £1 × (1 − fee allowance ÷ 100)Applying the fee as a percentage of the whole budget approximates the position where every transaction carries the same charge. Where a flat fee applies per withdrawal, fewer larger withdrawals cost proportionally less.
Worked example: an £800 budget
Using the default figures — £800 at 1.17 units per pound with a 3% fee allowance:
- Before fees: 936 units
- After fees: 907.92 units
The 3% costs 28 units — around £24. A card with no foreign transaction fee would keep that, which for a family taking £2,000 abroad is £60 saved for the cost of applying for a card in advance. It is one of the more reliable savings available in travel, and it has to be arranged before departure rather than at the airport.
Common mistakes
- Using the mid-market rate. No consumer receives it.
- Changing money at the airport. Rates there are consistently the worst available.
- Accepting payment in pounds abroad. Dynamic currency conversion always costs more.
- Making many small cash withdrawals. Flat fees per withdrawal add up quickly.
- Comparing on the advertised rate alone. Compare the amount actually received.
Frequently asked questions
Where do I get the best rate?
Generally, a card with no foreign transaction fee used for purchases, supplemented by modest cash withdrawals from a bank cash machine. Specialist travel cards and app-based accounts often use rates close to mid-market. Airport bureaux are consistently the most expensive, and pre-ordering online for collection is usually better than walking up.
Should I take cash or use cards?
Predominantly cards, with some cash. Cards give better rates and are replaceable if lost; cash covers places that do not accept cards, tips and emergencies. Carrying two cards from different providers, stored separately, protects against one being lost or blocked.
What is a foreign transaction fee?
A charge added by your card provider on any transaction in a foreign currency, typically around 3%, sometimes with an additional flat fee on cash withdrawals. Several UK providers charge nothing, and switching or opening a secondary account for travel is straightforward. It is the single largest avoidable cost in spending abroad.
Is it worth buying currency in advance?
For rate certainty, sometimes. Rates move, and locking in removes the risk in both directions. In practice most travellers do better by using a fee-free card and not attempting to time the market. Buying a small amount of cash in advance for arrival, and using cards thereafter, is a reasonable compromise.
Is what I enter stored?
No. Figures are processed in your browser and never transmitted or retained.
Related tools
References
- Financial Conduct Authority — regulation of money transfer and currency services
- MoneyHelper — travel money, card charges and getting the best rate
Sources are checked at publication and can change — how I choose and check references.