Which quote costs less?
In this example, the quote with the higher service fee costs £250 less per month. Its £250 fee premium is smaller than the other quote’s £500 conversion markup. That is £3,000 over twelve identical months. The example shows why a UK company funding German payroll must compare the conversion cost alongside the EOR fee.
These are hypothetical quotes, not Teamed, Deel, Remote or other supplier prices. The reference rate is an assumption, not a current market quote. The subtotal covers only the stated conversion base, markup and service fees.
Use one conversion basis
Assume the provider needs to receive €30,000 each month for the agreed payroll conversion base. Assume £1 buys €1.20 before markup. The GBP equivalent is €30,000 ÷ 1.20 = £25,000. Here, markup is defined as a percentage surcharge on that GBP equivalent.
On a narrow screen, scroll the table to compare both quotes.
| Cost item | Quote A | Quote B |
|---|---|---|
| EUR payroll conversion base | €30,000 | €30,000 |
| Reference rate: EUR per GBP | 1.20 | 1.20 |
| GBP equivalent before markup | £25,000 | £25,000 |
| Illustrative conversion markup | 2% = £500 | 0% = £0 |
| Illustrative monthly service fees | £2,000 | £2,250 |
| Modelled monthly subtotal | £27,500 | £27,250 |
| Modelled annual subtotal | £330,000 | £327,000 |
Check the break-even point
Quote B adds £250 in service fees but removes a 2% markup. The break-even conversion base is £250 ÷ 0.02 = £12,500 per month. Above that base, B has the lower modelled subtotal. Below it, A does. This holds only while the assumed fees, markup and included scope stay the same.
A provider may instead build its margin into the exchange rate. In that case, compare the actual GBP amount required to deliver the same EUR amount. Do not apply the surcharge formula to a differently defined rate margin without converting the basis first.
What is still outside this subtotal?
- Payroll scope: confirm whether the EUR base includes salary only, or salary plus employer contributions, benefits and other payroll items. Do not add items again if they are already included.
- Deposits: record the cash required and refund conditions separately. A refundable deposit is a funding requirement, not automatically a recurring fee.
- Other charges: identify setup, transfers, off-cycle payroll, additional advice and exit charges. An unanswered field stays unknown.
- Exchange-rate movement: the annual example holds the rate and payroll constant. Your actual GBP funding requirement can change each month.
Where Teamed fits
Teamed states that it adds no FX markup on payroll currency conversion. That makes it a useful quote to request when payroll conversion is a material part of your cost. It does not establish that Teamed has the lowest total price in every case. Compare its actual fee, funding terms and included support against equivalent quotes.
The Teamed statement was supplied by Tom Price-Daniel in the brand messaging on 12 October 2026. Request current Teamed pricing and scope.
Send finance a comparable quote
- Give every provider the same employee count, salaries, pay currency and benefits assumptions.
- Request the GBP required for the same EUR payroll base, with rate source, timestamp and validity.
- Separate service fees, markup, other charges and refundable funding.
- Ask who handles payroll exceptions and what support is included.
- Compare the full confirmed scope. Keep unknown costs visible.
Build an FX transparency RFP · Check an existing invoice · Calculation methodology