FX Gain & Loss Calculator
The rate moved between raising the invoice and being paid. Work out what that movement — and your bank’s spread — actually cost.
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How it works
A foreign-currency invoice is recorded at the rate on the invoice date. When it settles at a different rate, the difference is a realised exchange gain or loss that has to be recognised separately from the sale itself.
The bank’s spread is the part most businesses under-count. The rate you are given is rarely the mid-market rate quoted publicly, and a 2% spread on a large invoice frequently exceeds the entire market movement over the same period.
Gain = (settlement rate × (1 − spread) − invoice rate) × foreign amount − fees
- Invoice rate — the exchange rate on the day the invoice was raised
- Settlement rate — the mid-market rate on the day the money arrived
- Spread — the bank’s margin against the mid-market rate
Worked example
A USD 40,000 invoice booked at 84.20, settled at 86.10 with a 1.8% spread and 3,500 in fees
Inputs
Results
The market moved 76,000 in your favour; the spread took 61,992 of it and the fees another 3,500, leaving 10,508. The bank captured more of the movement than you did.
Frequently asked questions
Why is my gain so much smaller than the rate movement suggests?
Because the spread and fees come out of it. On a 1.8% spread, a movement under 1.8% turns a market gain into a net loss — which is why the spread deserves as much attention as the rate itself.
How do I find my bank’s spread?
Compare the rate you were given against the mid-market rate for that day and moment. The difference as a percentage is your spread. Banks rarely publish it, so it has to be inferred this way.
How is an exchange gain treated in the accounts?
Usually as a separate line in other income or expense, not as part of revenue. Revenue stays at the invoice-date rate; the movement is recognised on settlement.
Is my data sent anywhere?
No. The calculation runs entirely in your browser. Nothing you type is transmitted to us or stored.
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