What this calculator does
When PayPal converts a payment from one currency to another, it does not use the raw market exchange rate you would see on a currency site. It applies its own rate, built by taking the market rate and subtracting a markup, so the amount that lands in your account is smaller than a straight market-rate conversion would produce.
PayPal does not publish one fixed markup that applies everywhere and never changes; the figure moves by currency pair, account type and country, and PayPal can adjust it. This calculator treats the markup as an editable input, commonly cited in the 3 to 4 percent range, rather than a hidden constant, so you can plug in the rate PayPal actually quoted you and see the gap in real terms.
The formula
PayPal's effective exchange rate is the market rate reduced by the markup percentage. Multiplying your amount by that reduced rate gives what you actually receive; multiplying by the untouched market rate gives what you would have received at a true market conversion. The difference between the two is what the markup costs you.
| Term | Meaning |
|---|---|
| Market exchange rate | The underlying rate quoted by banks and currency markets, before any conversion fee is applied. |
| Markup | The percentage PayPal shaves off the market rate to set its own conversion rate. Not fixed, and worth checking against your actual statement. |
| Effective rate | Market rate × (1 − markup), the rate PayPal actually applies to your conversion. |
The inputs explained
| Field | What to enter |
|---|---|
| Amount to convert | The amount being converted, in the source currency. |
| Market exchange rate (units of target currency per 1 unit of source) | The market exchange rate for the currency pair, as shown by a bank or currency site at the time. |
| PayPal currency conversion markup (%) | The percentage PayPal is taking off the market rate. Check your PayPal transaction details for the rate actually applied, and enter the implied markup here rather than assuming a fixed figure. |
When to use it
Receiving a payment from overseas
Before accepting a currency conversion PayPal offers on an incoming payment, comparing its rate against the market rate shows exactly how much of the payment the conversion is costing.
Deciding whether to hold a balance in the original currency
If PayPal lets you keep funds in the currency they arrived in and convert later, working out the current markup helps decide whether converting now or waiting is likely to matter more than exchange-rate movement itself.
Comparing PayPal against a bank transfer or card
Other ways of receiving or sending money abroad also carry their own margin on the exchange rate. Working out PayPal's markup in dollar terms makes it directly comparable to a quoted bank or card fee.
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How much does a 3.5% markup cost at different markup rates?
A fixed $100 payment and market rate of 1.35, across a range of markup percentages.
| Markup | Amount you receive at PayPal's rate | Difference lost to the markup |
|---|---|---|
| 1% | 133.65 | 1.35 |
| 2% | 132.30 | 2.70 |
| 3% | 130.95 | 4.05 |
| 3.5% | 130.28 | 4.72 |
| 4% | 129.60 | 5.40 |
| 5% | 128.25 | 6.75 |
How does the amount received change with a larger payment?
A fixed market rate and markup, across a range of payment amounts.
| Amount converted | Amount you receive at PayPal's rate | Difference lost to the markup |
|---|---|---|
| $50 | 65.14 | 2.36 |
| $100 | 130.28 | 4.72 |
| $250 | 325.69 | 11.81 |
| $500 | 651.38 | 23.63 |
| $1,000 | 1,302.75 | 47.25 |
| $2,000 | 2,605.50 | 94.50 |
Questions
Is PayPal's exchange rate markup the same as its transaction fee?
No. A transaction fee is a separate percentage-plus-fixed charge for processing the payment itself. The exchange rate markup is a different cost, built into the conversion rate applied when money changes currency, and the two can both apply to the same payment.
What markup does PayPal actually charge?
It varies by currency pair, region and account type, and PayPal can change it, so there is no single number that always applies. The most reliable way to find your own figure is to compare the rate shown on a specific PayPal transaction against the market rate at that time.
Can I avoid the currency conversion markup?
Some PayPal account types let you hold a balance in the currency it arrived in rather than converting immediately, or let you choose your own card's conversion instead of PayPal's at checkout, which sometimes uses a different rate. Whether either option is available depends on your account and country.
Why does the market exchange rate I look up not exactly match PayPal's quote?
Market rates move continuously and different sources can show slightly different snapshots. Use the rate quoted at roughly the same time as the PayPal conversion for the most accurate comparison.
For PayPal's separate processing fee on a payment, see the PayPal fees calculator. For converting between weight and volume at a chosen density elsewhere on the site, the kg to litres converter uses the same rate-times-amount idea.