How to Calculate the Exchange Rate for Foreign Currency

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Plus, quick conversion tools to use and where to exchange your cash
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If you're planning to travel internationally and exchange your money for another country’s currency, it's important to figure out how much cash you'll have after the exchange. This helps you budget for your trip and ensure you have enough money to enjoy it. Luckily, calculating the exchange rate just involves finding the rate you want to convert to and doing a bit of multiplication. In this article, we’ll also explain other tools that you can use to calculate the exchange rate, as well as tell you where to exchange your money if your trip is soon. Keep reading to learn more!

Currency Conversion Formula

Multiply the base currency by the exchange rate of the currency you’re converting to, or A*B = C. Here, A is your base currency value, B is the exchange rate, and C is your money after the exchange. For instance, if you have $120 and the exchange rate for USD to euros is 0.85, multiply $120 by 0.85 to get €102.

Section 1 of 3:

Calculating Exchange Rate by Hand

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  1. For instance, if you’re planning a trip to another country, think about how much money you're budgeting for. Or, if you know how much money you want to have in the other country’s currency, work backwards and start with the foreign currency to find out how much money you need to exchange.
    • For example, say you’re planning a trip from the United States (USD) to Spain (Euro). If you’re budgeting $3,000 for your trip, you want to know how much money you can expect to exchange it for in euros.
  2. Do a quick web search, such as “USD to euro,” to find out the current exchange rate for the currency you want to convert to. The first number listed is the base currency, which is the currency you’re converting from, and is always set to 1 (for example, $1 USD). The second number is the exchange rate, which tells you how much 1 unit of your base currency is worth in the foreign country’s currency.
    • Say you’re converting USD to Euro. When you search for “USD to Euro,” you see that the exchange rate is 0.85. This means that $1 USD is equal to €0.85. In other words, $1 can be exchanged for €0.85, or $1 buys you €0.85.
    • Google typically lists the current exchange rate, but you can also find current rates on many banking and investing websites.
    • Exchange rates are constantly changing, so it’s important to check the most current rate before doing your calculations.
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  3. To find out how much money you’ll have in the foreign currency after the exchange, set up the simple equation A*B = C , where “A” is the money you have in the base currency, “B” is the foreign currency’s exchange rate, and “C” is how much money you'll have after the exchange in the foreign currency. In other words, simply multiply the money you have in the base currency by the foreign currency’s exchange rate. [1]
    • Say you’re taking $3,000 to Spain and the current USD to Euro exchange rate is 0.85. So, you want to know how much money in euros you’ll have.
      • Plug the information into the formula: $3,000 * 0.85 = € C .
      • $3,000 * 0.85 = €2,550.
      • So, exchanging $3,000 for euros leaves you with €2,550.
  4. 4
    Or, divide the foreign currency by the exchange rate. If you know how much money you want to have in the foreign currency, divide this number by the exchange rate to find out how much money you need to exchange in your base currency. Set this up with the basic equation A = C/B , where “A” is the money you need to have in the base currency, “B” is the foreign currency’s exchange rate, and “C” is how much money you want to have in the foreign currency. [2]
    • Say you’re traveling to the United Kingdom from the United States. You know that you want to have £4,000 for your trip, and the current USD to British Pound exchange rate is 0.74. So, you want to know how much money in USD you need to exchange to have £4,000.
      • Plug the information into the formula: A = £4,000/0.74.
      • £4,000/£0.74 = $5,405.
      • So, you need to exchange $5,405 to get the £4,000 that you want to have on your trip.
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Section 2 of 3:

Using Other Conversion Tools

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  1. Many financial websites provide conversion tools that allow you to plug in the amount of money you want to exchange to see what it’s worth in another country’s currency. For instance, check out currency conversion tools on Oanda.com and XE.com .
  2. 2
    Use Excel to calculate exchange rates. Spreadsheet editors like Excel and Google Sheets make it easy to convert from one currency to another . Simply write down the exchange rate you want to convert to in a cell. Then, list all the values in the base currency that you want to exchange. In the column next to the values, select the cell with the exchange rate and multiply it by the cell with the first value. Then, drag the formula down.
    • If you have a Microsoft 365 account , write down all the currency pairs you want to convert in a column, formatting the cells like “ From currency / To currency ” (e.g., “USD/EUR”). Highlight the cells and create a table. Then, change the cells’ data type to Currencies. Select “Price” from the Insert Data button to populate the current exchange rate for the pair. [3]
  3. 3
    Use your smartphone’s calculator app. For instance, Apple has a currency conversion tool built into the Calculator app. In the app, tap the calculator icon in the bottom left corner. Then, tap the “Convert” switch. Press the arrows to select the currencies you want to convert between. Then, enter the amount of money that you want to exchange. [4]
  4. Google has its own currency converter that pops up instantly when you search for the conversion you want to make. So, simply type the conversion, like “yen to euro,” into your search bar to see what the current exchange rate is. The boxes are editable, so you can input different values to see how much your money is worth in the other country’s currency.
    • For quicker results , search for the exact conversion you want to make. For example, if you want to know what the exchange rate for ¥10,000 to euros is, type “10000 yen to euros” in the search bar, and Google will give you the answer.
    • Google can’t always track and update current currency exchange rates, so this information is more of an estimate and should not be relied on as accurate, up-to-the-minute data.
  5. For instance, the Department of the Treasury lists data on the most common exchange rates every 3 months on its website . The department’s email is listed on the website for you to contact if you have any questions, too.
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Section 3 of 3:

Where to Exchange Currency

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  1. Most major banks, like Bank of America and Wells Fargo, keep foreign currency on hand, allowing you to exchange your currency before you leave for your trip. [5] You can usually order the foreign currency online or visit the bank in person to pick up the money directly. If you’re a member of the bank, the fees for exchanging currency are typically very minimal, if there are any fees at all.
    • Even if you are not a customer of the bank, banks usually only charge low fees for exchanging currency.
    • If your bank's branch does not keep the currency on hand, it can usually order it for you. This usually takes about 2-5 business days. [6]
    • Many smaller banks and credit unions are unable to exchange foreign currency.
    • Most exchange services charge fees for exchanging currency. So, you usually end up paying a higher rate than the actual rate you’ll see online. Shop around at different banks to see who offers the best rates to get the best deal.
  2. Sometimes the easiest way to exchange money is to use your card at an ATM while you are traveling. Lots of major banks have branches abroad or partner with local banks, so their fees are lower when you use an in-network ATM. [7] While less convenient, you can also visit a major bank in the country and ask to exchange your money. Just know that some banks might refuse if you’re not a member.
    • When using an ATM, your bank will typically charge you a foreign transaction fee that is a percentage of the entire amount withdrawn (usually 1-3%), in addition to other fees for using the ATM. [8]
  3. Most major airports have currency exchange services to help travelers exchange their money when they arrive at their destination. While these services can be convenient, they often charge much higher fees than exchanging currency at your bank. [9]
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Exchange Rate Calculator Guide

Community Q&A

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  • Question
    I have the USA amount and the Canadian amount, how do I calculate the exchange rate?
    Community Answer
    Division. Canadian money divided by American money equals the exchange rate from USA to Canada. The opposite makes the exchange rate for the other direction, C/A=R.
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  • Question
    At a rate of 1.5625 Swiss franc per dollar, what is $50 in Swiss francs?
    Community Answer
    The equation you need is 1.5625 x 50 = 78.125 Swiss francs.
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    Not Helpful 15 Helpful 28
  • Question
    I have an international hotel bill (JPY) that has an exchange rate of .0093 USD. How do I calculate the daily hotel charge?
    Blake Nouribekian
    Community Answer
    If your hotel bill was 100,000 Yen and you multiply it by .0093 you get $930 USD. Divide that by how many days you stayed.
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      • Always use up-to-date rate exchange rate info to calculate how much money you’ll get in an exchange. Currency exchange rates fluctuate frequently. While you can get a rough estimate using old rates, little differences can add up to a lot when you’re exchanging a lot of money.
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      • Exchange rates are influenced by a lot of things, which is why they fluctuate frequently. For instance, the country’s interest rates, inflation rate, GDP, employment rates, and political stability can all impact what its money is worth in other countries’ currencies.
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      References

      1. ↑ https://youtu.be/h5lzFnxcmWQ?si=yf_BU7FEZDIs-FRB&t=78
      2. ↑ https://youtu.be/h5lzFnxcmWQ?si=ft3p0y_NeyRn35Lw&t=102
      3. ↑ https://youtu.be/Gj6GtQqb170?si=3mmYwxxHHaSYD1_l&t=59
      4. ↑ https://support.apple.com/en-mo/guide/iphone/iph69d274dde/ios
      5. ↑ https://www.wellsfargo.com/foreign-exchange/
      6. ↑ https://www.wellsfargo.com/foreign-exchange/international-tips/
      7. ↑ https://www.nerdwallet.com/article/travel/order-foreign-currency
      8. ↑ https://www.bankofamerica.com/deposits/manage/how-to-pay-when-traveling-abroad.go
      9. ↑ https://www.nerdwallet.com/article/travel/order-foreign-currency

      About This Article

      Article Summary X

      To calculate exchange rate, multiply the money you have by the current exchange rate, which you can find through Google or by calling the Department of the Treasury. For example, if you want to convert $100 to pesos when 1 dollar equals 19.22 pesos, then you would have 1,922 pesos after the exchange. If you know how much money you’ll need in the other country, you can divide that number by the exchange rate to see how many dollars you need to exchange. To learn where and how to exchange money, read on!

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