Currency Converter

A currency converter is a tool that allows you to exchange the value of one currency to another using current market exchange rates. It's essential for international travel, foreign trade, global investments, and online purchases from other countries.

The exchange rate (also called the currency rate) is the price of one currency expressed in terms of another. For example, if 1 US dollar (USD) equals 0.92 euros (EUR), the USD/EUR exchange rate is 0.92.

Why do exchange rates change?

Exchange rates fluctuate constantly due to:

• Supply and demand - Higher demand for a currency increases its value
• Interest rates - Countries with higher rates attract more foreign investment
• Political stability - Political uncertainty weakens a currency
• Inflation - High inflation decreases a currency's purchasing power
• Economic performance - Strong economies have more valuable currencies

Our calculator allows you to convert between multiple currencies easily:

Steps to Convert

1. Select source currency

   • Choose the currency you have (example: USD - US Dollar)

2. Enter amount

   • Type the amount you want to convert (example: 1000)

3. Select target currency

   • Choose the currency you want to convert to (example: EUR - Euro)

4. Get instant result

   • You'll see the conversion with the current exchange rate
   • The rate updates automatically

Conversion Formula

Converted Amount = Original Amount × Exchange Rate

For example:

• 1,000 USD × 0.92 EUR/USD = 920 EUR

Inverse Conversion

To convert back (EUR to USD):

• Amount in USD = Amount in EUR ÷ EUR/USD Rate
• Or use the inverse rate: Amount in EUR × (1 ÷ EUR/USD Rate)

Situation: You're traveling to Spain from the United States and need to exchange $2,500 USD to euros. The current exchange rate is 1 USD = 0.92 EUR.

Step-by-step solution:

1. Amount to convert: $2,500 USD

2. Exchange rate: 1 USD = 0.92 EUR

3. Calculation:

   • 2,500 USD × 0.92 = 2,300 EUR

4. Result: You'll receive approximately 2,300 euros

Additional considerations:

• Bank commission: Banks typically charge 1-3% for conversion. With 2% commission:
  • 2,300 EUR - 46 EUR (2%) = 2,254 EUR actual
• Best place to exchange: Airports have the worst rates. Better to use ATMs at your destination or exchange at local banks.
• Credit cards: Many cards charge 2-3% foreign transaction fees. Look for no-fee international cards.

✅ Compare rates before exchanging: Rates vary between banks, exchange houses, and airports. Compare before deciding.

✅ Avoid airport exchanges: They typically have the least favorable rates and highest commissions.

✅ Use local ATMs: Generally offer better rates than exchange houses, but check your bank's fees.

✅ Watch for hidden fees: Some exchange houses advertise "no commission" but use unfavorable exchange rates.

✅ Consider specialized cards: Cards like Wise (TransferWise) or Revolut offer near-market rates with minimal fees.

✅ Monitor rates: If it's not urgent, wait for favorable rates. Financial apps can alert you to rate changes.

What's the difference between buy rate and sell rate?

The buy rate is what the bank pays for your foreign currency. The sell rate is what they charge you to sell foreign currency to you. The difference (spread) is the bank's profit.

Are online rates the same as at banks?

No. The rates you see online are interbank market rates (between banks). Banks and exchange houses add a profit margin, so you'll get a less favorable rate.

Should I exchange money before traveling?

Generally no. It's better to carry a bit of local cash for immediate emergencies and then use ATMs at your destination for better rates. Check with your bank about international fees.

How does inflation affect conversions?

High inflation in a country weakens its currency. If planning a significant conversion, high inflation may make it better to do it sooner (if the target currency is stable) or wait (if the source currency is strengthening).

Are cryptocurrencies good for international conversions?

They can be due to low fees, but volatility is high. Only use them if you understand the risks and can convert quickly to local currency upon arrival.

What are currency pairs?

They're combinations of two currencies (e.g., EUR/USD). The first symbol is the "base currency" and the second is the "quote currency." The rate shows how many units of the quote currency you need to buy one unit of the base currency.