Calculator
Cross-border FX slippage estimator
Cross-border conversions carry spread every crossing, invisible until multiplied. Volume times observed deviation-from-typical produces the annualised drag number that converts folklore ("our lanes cost more") into procurement conversations with attached evidence.
Formula and example
Excess = monthly cross-border volume × (observed deviation − typical spread), then annualise. Worked: $200k monthly volume, typical 0.5%, observed 1.7% on affected transfers → $2,400 monthly excess, $28,800 annualised if unchanged. Label modelled; baselines refine it.
Why relative baselines beat mid-market comparisons
Mid-market comparison restates that spreads exist. Same-day, same-pair baselines isolate genuine outliers — misconfigured settlement currencies, timing anomalies — which are actionable, from constant known cost, which is negotiable at renewal. Different questions need different baselines; only one produces findings.
Monitoring-not-recovery, stated again
Converted money stays converted. Value arrives via outlier alerts catching live configuration errors and documented figures arming rate negotiations. Findings say so explicitly — honesty is the feature.
Common questions
What tolerance triggers an outlier?
Deviations beyond ~0.8% versus same-day baseline, directional (losses only) — windfalls never flag.
Can slippage be reversed?
No. Reduced going forward through currency balances, batching, and negotiation armed with your measured figures.