FX Fee Drag Calculator
Foreign-exchange costs are easy to ignore because they often look small on a single transfer. This calculator turns a conversion spread, fixed transfer fee, monthly contribution, and return assumption into a long-term fee-drag estimate.
Ending value after FX costs
$99,044
10 years
Fee plus lost compounding
$497
0.50% Drag versus baseline
Estimated FX fees paid
$423
No-FX-cost baseline
$99,541
Drag versus baseline
0.50%
Planning model only. It treats every monthly contribution as converted before investing, applies a constant return, and applies the same FX fee again on the final exit conversion. It ignores real exchange-rate moves, taxes, broker commissions, cash sweep yields, transfer delays, account rules, and changing fee schedules.
Model the cost before choosing a broker
A broker comparison is not only about stock commissions. For investors who fund a US-stock account from another currency, repeated conversion spreads and fixed transfer charges can become a recurring cost layer. This model helps compare those costs before treating a headline return as spendable wealth.
Separate FX costs from exchange-rate risk
The calculator does not forecast USD/KRW or any other currency pair. It holds the currency path constant and only models the fee charged to convert money in and out. A real plan still needs a separate view on currency exposure, tax treatment, and cash-flow timing.
What the estimate intentionally excludes
It excludes taxes, actual exchange-rate moves, broker commissions, margin interest, idle-cash yield, transfer delays, account minimums, and future fee schedule changes. Treat the output as a planning estimate, not financial, tax, or broker selection advice.
FAQ
What is FX fee drag?
It is the long-term difference between a no-conversion-cost baseline and a portfolio where each contribution and final exit conversion pays a spread or fixed fee.
Does this calculator forecast exchange rates?
No. It only models conversion costs. It does not forecast currency movements, which can be much larger than the fee in either direction.
Why include a final exit conversion?
Many investors eventually convert portfolio proceeds back into their home currency. Including a final conversion keeps the model from understating the total round-trip cost.
Evidence to read next
Use the calculator output with source-backed research, not as a standalone signal.
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