Forex markup calculator: what does spending abroad really cost?
A “zero commission” sign rarely means free. Every way of paying abroad hides its cost somewhere: a card adds a foreign-currency markup to the network rate, a forex card and a money changer sell you currency above the reference rate, and in India GST is charged on the currency conversion itself. This forex markup calculator puts a card abroad, a forex card and cash side by side for the same spend and shows what each really costs in rupees (or pounds, dollars or euros), the effective exchange rate you end up paying and how far it is above the reference rate.
For Indian travellers it also works out the 18% GST on currency conversion using the value slabs of rule 32 of the CGST Rules, the GST on card markups and fees, and the TCS that applies once your foreign remittances under the Liberalised Remittance Scheme pass ₹10 lakh in a tax year. Bank names are left out on purpose: type the markup and rates your own bank quotes.
How to use the Travel Money & Forex Card Cost Calculator
- Choose your home currency and type the currency you will spend and the amount.
- Enter today’s reference rate, or press Get today’s rate for a mid-market rate.
- Enter your card’s foreign-currency markup and the margin your forex card provider and money changer add to the rate, plus any fixed fees.
- In India, choose how the GST value is worked out and enter what you have already sent abroad this tax year for the TCS check.
- Compare the totals, effective rates and breakdowns, and copy the comparison.
Travel Money & Forex Card Cost Calculator features
Three ways to pay compared
Card abroad, forex card and cash, each with its own markup or rate margin and fees.
GST on currency conversion
Rule 32(2)(b) slabs with the ₹250 minimum and the ₹60,000 value cap, or the rate-difference method of rule 32(2)(a).
TCS check
20% on the part of the year’s LRS total above ₹10 lakh, shown separately because it is credited against your tax.
Effective rate
Total paid ÷ foreign amount, so you can compare any quote with the reference rate.
Works outside India
Pick GBP, USD, EUR or AED and the GST and TCS lines disappear.
GST on foreign currency conversion (rule 32)
Money changing is taxed at 18% GST, but on a deemed value rather than the whole amount. Under rule 32(2)(b) of the CGST Rules, 2017 — the option most banks and money changers use — the value is set by slabs of the gross rupee amount exchanged:
| Rupee amount exchanged | Taxable value | GST at 18% |
|---|---|---|
| Up to ₹1,00,000 | 1% (minimum ₹250) | ₹45 to ₹180 |
| ₹1,00,001 to ₹10,00,000 | ₹1,000 + 0.5% of the amount above ₹1 lakh | ₹180 to ₹990 |
| Above ₹10,00,000 | ₹5,500 + 0.1% of the amount above ₹10 lakh, capped at ₹60,000 | ₹990 to ₹10,800 |
Reading the rules carefully
The ₹60,000 limit in the rule caps the taxable value, not the tax, so GST on a single conversion cannot exceed 18% × ₹60,000 = ₹10,800; some websites describe it as a ₹60,000 cap on GST, which is not what the rule says. The middle slab is read as ₹1,000 plus 0.5% of the part above ₹1 lakh, which makes the slabs run on without a jump. Under rule 32(2)(a) the value is instead the difference between the bank’s rate and the RBI reference rate multiplied by the units of currency. On a card, the issuer charges GST at 18% on its markup and fees.
TCS is not a cost: under section 394(1) of the Income-tax Act, 2025 (Table Sl. No. 7, formerly section 206C(1G)), banks collect 20% on the part of your year’s LRS remittances above ₹10 lakh for purposes other than education and medical treatment, and you claim it back against your income tax. Loading a forex card or buying currency notes counts towards that total; for card payments abroad, ask your bank how they are treated. The TCS calculator covers education, medical and tour-package rates. Rules as checked on 24 October 2026; this is an estimate, not financial or tax advice.
Travel Money & Forex Card Cost Calculator FAQ
What is a forex card markup fee?
It is the percentage a card issuer adds when you pay in a foreign currency, or the margin a forex card provider adds to the exchange rate when you load it. On $1,000 at ₹88, a 3.5% markup costs ₹3,080 plus 18% GST.
How is GST on foreign currency conversion calculated?
In India, GST is 18% of a deemed value: 1% of the amount up to ₹1 lakh (at least ₹250), ₹1,000 + 0.5% of the amount above ₹1 lakh up to ₹10 lakh, and ₹5,500 + 0.1% above that, with the value capped at ₹60,000.
Is a forex card cheaper than a credit card abroad?
Often, when its rate margin is small and the card’s markup is 3–3.5%. A card with no foreign-currency markup can be cheapest. Enter both quotes and the calculator shows which wins.
What is the effective exchange rate?
What you actually paid in your currency divided by the foreign amount you got. Compare it with the reference rate to see the true cost.
Do I pay TCS on a forex card?
Only on the part of your LRS remittances for the tax year above ₹10 lakh, at 20% for travel, and it is adjusted against your income tax.
Which reference rate should I use?
The mid-market rate or, in India, the RBI reference rate for the day. The fetch button gives a mid-market rate.