Millions of residents in Saudi Arabia send money to their families abroad every month. Understanding how the net amount is calculated after fees and exchange rate helps you choose the best method and save money. This guide explains the formula, compares methods, and offers tips.
How is a transfer calculated?
The simple formula: (amount sent − fee) × exchange rate = amount received. The fee is a flat amount deducted by the provider, and the exchange rate determines how many units of foreign currency you get per riyal.
Worked example
Sending SAR 1,000 to India, with a SAR 15 fee and a rate of 22 rupees per riyal:
(1,000 − 15) × 22 = 985 × 22
Amount received = 21,670 rupees.
Compare before you transfer
- Flat fee: varies among banks, exchange houses, and apps like STC Pay.
- Actual exchange rate: the most important factor — a small rate difference can outweigh fee savings.
- Speed: instant or within business days depending on destination.
- Collection method: bank deposit, cash pickup, or digital wallet.
Money-saving tip
Do not look at the fee alone; calculate the final net amount for each provider. Sometimes a provider offers a low fee but a worse exchange rate, making the total cost higher.