FX, Settlement & Transaction Infrastructure challenge
Nostro accounts, netting, settlement risk and payment-versus-payment.
Treasury / FX · Professional Microtool
FX & Settlement Cost Calculator
Spread · Fees · All-in rate
Put a figure on cross-border payment cost: the FX spread on settled value, the per-payment charges, the effective rate in basis points, and what netting removes before anything is paid at all.
- —Gross volume
- —Netted away
- —Actually settled
- —Spread
- —Fees
- —Monthly cost
Start from an example: Fifty million a month, 25 basis points, no netting →
Full output
- —Annual cost
- —All-in rate on gross volume
- —Cost of the spread
- —Cost of the fees
- —Value actually settled
- —Payments actually made
Monthly cost against the share removed by netting
Netting takes value and count out together, so it reduces spread and fees at the same time — which is why it usually beats renegotiating the spread alone.
Keep it
Both carry the figures you entered, in the part of the address that is never sent to a server. Share only where that is appropriate. To keep a copy for a project file, print the page — it lays itself out as a document.
Want this against your own bank statements?
We can analyse your real payment and FX flows, quantify what netting would actually remove, and build the treasury tooling that runs it every cycle.
Calculation basis 4 steps · view the method →
Value settled = gross volume × (1 − netted share)—Cost of the spread = value settled × spread ÷ 10,000—Cost of the fees = payments settled × fee per payment—All-in rate = total cost ÷ gross volume × 10,000—
Assumptions & limitations Screening estimate for treasury cost review and netting business cases · 6 assumptions →
This is a screening estimate for comparing options, not a quotation. Real cost depends on the currency pair, the time of day, the tiering in your bank agreement, lifting and receiving charges at the other end, and what the counterparty's bank deducts. Confirm against your own statements before negotiating on these figures.
- One average spread is applied to all currency pairs and to every time of day.
- Netting is assumed to remove the same share of value and of payment count, and to remove FX conversion with them — true for obligations that offset within a currency, optimistic where they do not.
- Receiving, lifting and intermediary charges deducted by the counterparty's bank are excluded unless you include them in the fee.
- No cost is attributed to running the netting cycle itself, which needs a process and a system.
- Hedging cost, funding cost and the value of any float are excluded.
- Currency movement between trade and settlement is not modelled.
Worked examples
- Fifty million a month, 25 basis points, no netting
Open with these figures → - The same flows with 60 per cent netted inside the group
Open with these figures →
About this tool
Cross-border cost hides in two places at once — a spread nobody sees on the statement and a per-payment fee that looks trivial until it is multiplied by the count. This tool adds them together, expresses the result as an all-in basis-point rate, and shows what netting is worth before a single rate is renegotiated. Written for treasury, finance operations and the teams building payment platforms.
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