How to Calculate Exchange Rate

Last Updated: March 24, 2022 References

If you're planning to go abroad and exchange your money for another currency, it's a good idea to figure out how much cash you'll have after the exchange. Also, knowing exactly how much your money is worth can prevent you from being charged unreasonable fees because you'll be able to calculate your losses and choose which method to use if you plan in advance. Being aware of how much your foreign currency is worth is a smart travel move that can potentially save you quite a bit of trouble.

Part 1

Part 1 of 3:

Doing the Math Yourself

1
Estimate the amount of money you wish to exchange. Think about how much money you're budgeting for the trip. Or, if you know how much money you'll need in the other country, work backwards and start with the foreign currency.
2
Look up the exchange rate of the currency to which you wish to convert. You can find this information on a Google search, or on several banking or financial websites.
- Note that you want to set the currency you have to 1; the value listed next to the currency you're exchanging to is the exchange rate.
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3
Calculate how much money you'll have after the exchange. Multiply the money you've budgeted by the exchange rate. The answer is how much money you'll have after the exchange. If "a" is the money you have in one currency and "b" is the exchange rate, then "c" is how much money you'll have after the exchange. So a * b = c, and a = c/b.
- For instance, say you want to convert Euros to US dollars. At the time of this revision, 1 Euro is worth 1.09 US dollar. Your exchange rate is 1.09. If you're planning on taking $1500 Euros with you, you would multiply 1500 by 1.09. The answer, 1632.61, is how much money you'll have in dollars after the exchange.
- Here's an example of the "work backwards" method. Say that you know you'll need 20,000 Hungarian forints for your trip. You discover that 1 US dollar is equivalent to 226.43 forints. To figure out how many US dollars you would need to save at the current exchange rate, divide 20,000 by 226.43. The answer, 88.33, is how many US dollars you need to exchange.

Part 2

Part 2 of 3:

Using Other Conversion Tools

1
Check for an up-to-date conversion rate online. There are many websites^{[1]
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2
Contact the government for accurate exchange rates. You can contact the Department of Treasury^{[4]
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3
Google the conversion you want to know. Simply type into a Google search bar what conversion you want to make and Google will tell you the answer using their currency converter.
- For example, if you want to know what the exchange rate for $1,000 US to Euros is, type 1000 dollars to euros in any Google search bar and it will tell you the answer.
- However, because Google's finance converter does not constantly track and update current currency exchange rates, this information is more of an estimate and should not be relied on as accurate up-to-the-minute data.

Part 3

Part 3 of 3:

Exchanging Currency

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Ask your bank. Many banks, especially larger ones like Bank of America or Wells Fargo, keep foreign currency on hand in the branch.^{[6]
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Research source} You can go to the bank and pick them up directly or order them online. And, even if you are not a customer, these banks will usually allow you to exchange currency for a fee.
- If your bank's branch does not keep he currency on hand, they can often order it for you. This usually takes about 2-5 business days.^{[7]
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- Note: Many smaller banks and credit unions are unable to exchange foreign currency.^{[8]
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2
Use a currency exchange service. Most major airports have currency exchange services that use companies like Travelex^{[9]
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- These services often charge much higher fees than exchanging currency at a bank because they are in prime locations (like airports) where people need local currency quickly.
3
Use an ATM in a foreign country. Sometimes the easiest way to exchange money is to simply use your card at an ATM while you are traveling. Your bank will probably charge you a foreign transaction fee that is a percentage of the entire amount withdrawn (usually 1-3%)^{[10]
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Research source} in addition to other fees for using another bank's ATM.

Community Q&A

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.
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.
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.