Most Canadian credit cards add a fee of about 2.5% to every purchase in a foreign currency, whether you’re abroad or shopping online from a US store. It’s easy to miss because it’s folded into the converted price. This calculator shows what those fees cost you each year, and whether a card without them would leave you better off.
Foreign transaction fee calculatorSee what currency conversion fees cost you each year.
What you spend in other currencies
Enter amounts in Canadian dollars. Most Canadian credit cards charge about 2.5%. Leave the annual fee at $0 if the card you’d switch to has no fee.
You pay in foreign transaction fees
$0
a year, on $0 of spending in other currencies
How it works
If the card you’d switch to has an annual fee, the calculator takes that off your savings, so you can see whether switching is really worth it.
Worked example
| Two trips at $2,500 each | $5,000 |
| Online purchases in US dollars, $50 a month | $600 |
| Total foreign spending | $5,600 |
| Fees at 2.5% | $140 a year |
That’s $140 a year you’d keep with a card that has no foreign transaction fee. If that card also earns less in rewards than your current one, your real savings will be a little lower.
Ways to cut the cost
- Use a card with no foreign transaction fee for every purchase in another currency, abroad or online.
- Pay in the local currency. When a terminal or website offers to charge you in Canadian dollars, say no. The merchant’s conversion rate is usually worse than your card’s.
- Check online stores. A Canadian-looking website can still bill in US dollars. Look at the currency at checkout.
- Keep your rewards card for spending at home. A two-card setup, one for foreign purchases and one for everything else, often works best.
For the full explanation, see how foreign transaction fees work.
Frequently asked questions
How much is the foreign transaction fee on Canadian credit cards?
On most Canadian credit cards it’s about 2.5% of the converted amount. A smaller number of cards charge no foreign transaction fee at all. Check your card’s terms for the exact rate.
Do foreign transaction fees apply to online purchases?
Yes, if the store charges you in a foreign currency, even if you’re shopping from home. That’s why online purchases from US stores are included in the calculator.
Is a no foreign transaction fee card worth it?
It depends on how much you spend in other currencies. Enter your numbers above: if the yearly fees you’d save are more than any annual fee and any rewards you’d give up, it’s worth it.
Related reading
- Foreign transaction fees: what they are and how to avoid them
- Annual fee calculator: check whether a fee card pays for itself
- Cents per point calculator: what your points are worth