The Finance Algorithm

Foreign Transaction Calculator

Calculate the true cost of using your credit card overseas

Updated October 2026Built and checked by MaverickHow it's calculatedReport an error

Your numbers

Updates as you type
500
1.55

1 foreign unit = X AUD

%
3%

Usually 2-3.5% on most cards

%
5%

The extra margin when a terminal offers to charge you in Australian dollars

The button asks our AI to explain these figures in words.

Foreign transaction cost

Your cost (AUD)

$798

3.00% markup vs base

Base AUD

$775

raw rate USD

No-fee saving

$23

vs your card

Decline DCC saves

$40

vs accepting DCC

AUD cost of one purchase

No-fee card is the cheapest. DCC (terminal converts to AUD) is always the most expensive: refuse it.

$775No-fee cardbest case$798Standard card3% foreign fee$838With DCC5% DCC markup

10 similar purchases on a trip

Small per-transaction fees add up fast on a 2-week overseas trip.

$7,750No-fee card$7,980Standard card$8,380With DCC
Always decline DCC. When a terminal asks “pay in AUD or USD?”: pick the local currency. Your bank will convert at the Visa/Mastercard wholesale rate plus your foreign tx fee, which is almost always cheaper than the merchant's DCC rate. For frequent travellers, a no-foreign-fee card pays for itself on the first trip.

How it works

Paying in a foreign currency usually costs a foreign transaction fee on top of the exchange rate, and letting the merchant convert to dollars (dynamic currency conversion) can cost more. This calculator shows what one purchase costs on your card, on a card with no foreign fee, and with the merchant's conversion.

  1. 1Enter the purchase amount in foreign currency
  2. 2Add the current exchange rate
  3. 3Input your card's foreign transaction fee
  4. 4Add DCC markup if you chose local currency at terminal
  5. 5Compare to a no-fee travel card

The figures today

As of 7 November 2026, the lowest credit card purchase rate is 7.49%, from Unity Bank's Low Rate Visa Credit Card, while the typical best across 51 institutions is 12.49%.

Credit card rates

Worked examples

€500 Purchase on a Standard Card

€500 purchase at 1.65 AUD per euro on a card with a 3% foreign transaction fee.

Purchase amount (foreign currency)
500
Currency
EUR
Exchange rate
1.65
Foreign transaction fee
3%
DCC markup (if accepted at terminal)
5%
Is this a no-foreign-fee card?
No - standard card

$825 plus the 3% fee is $849.75 - $24.75 more than a card with no foreign fee. Letting the merchant convert to dollars at a 5% markup would cost $892.24, so paying in euros saves another $42.49.

Questions people ask

What is Dynamic Currency Conversion?
When you pay overseas, the terminal may offer to charge you in AUD. It sounds convenient but uses a terrible exchange rate + fees. Always decline and pay in local currency.
Which cards have no foreign transaction fees?
Several banks offer credit and debit cards with no foreign transaction fee; check the fee schedule in the product disclosure, as offers change.
Should I get travel money or use my card?
A card with no foreign transaction fee avoids the fee on each purchase, and a second card is a useful backup. Check ATM fees for cash withdrawals, and pay in the local currency.

The terms, in plain English

Foreign Transaction Fee
A fee your card charges on purchases in a foreign currency, or from overseas merchants even in dollars.
Dynamic Currency Conversion (DCC)
When a merchant overseas offers to charge you in Australian dollars at its own exchange rate, which usually includes a markup.
Exchange Rate Margin
The difference between the exchange rate you're charged and the wholesale market rate.

Official sources

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