Calculation formula of exchange cost

The calculation formula of exchange cost is: exchange cost = total export cost (RMB) ÷ net export foreign exchange income (foreign currency), in which the net export foreign exchange income is FOB net income (net foreign exchange income after deducting labor costs such as commission and transportation insurance).

The formula of exchange cost in general practice is: exchange cost = amount excluding tax ×( 1+ VAT rate-tax refund rate) ÷ declared amount.

Foreign exchange cost refers to the cost of how many yuan of domestic currency (RMB) an export commodity needs to exchange for one unit of foreign exchange. In other words, how many yuan of "total export cost" can be exchanged for "net income foreign exchange" of unit foreign currency.

Generally, the exchange cost is controlled at 5 to 8. If the exchange cost is higher than the bank's foreign exchange quotation, the export is a loss, otherwise it is a profit.

The profit and loss of export commodities reflected by foreign exchange cost is an important index to examine whether export enterprises have economic benefits, and its measurement standard is: the exchange rate of RMB against the US dollar.