Currency Converter
Convert between world currencies using precise exchange rates
What is a currency converter?
A currency converter calculates the value of money in one currency when exchanged into another using a specific exchange rate. It multiplies the original amount by the exchange rate to determine the equivalent value, helping travelers, businesses, and investors compare costs and plan transactions across different currencies.
Enter the current exchange rate from a trusted source (Google Finance, XE.com, or your bank).
Converted Amount
920.00 EUR
1,000.00 USD
Exchange Rate
1 USD = 0.92 EUR
Inverse Rate
1 EUR = 1.086957 USD
How is currency conversion calculated?
Currency conversion uses a straightforward multiplication formula. The exchange rate represents how many units of the target currency equal one unit of the source currency. Multiply your amount by this rate to get the converted value.
Currency Conversion Formula
Where the Original Amount is the value in the source currency and the Exchange Rate is the number of target currency units per one source currency unit.
Variable Definitions
- Original Amount: The quantity of money in the source currency you want to convert
- Exchange Rate: The price of one unit of the source currency expressed in the target currency
- Converted Amount: The resulting value in the target currency
- Inverse Rate: The reciprocal of the exchange rate (1 / rate), used for converting in the opposite direction
Always verify exchange rates from a trusted source before making financial decisions. Actual rates from banks and exchange services include a spread (markup) above the mid-market rate.
Frequently Asked Questions
Current exchange rates are published by central banks, major financial institutions, and reputable financial websites. Trusted sources include the Federal Reserve, European Central Bank, Google Finance, XE.com, and OANDA. Rates update frequently during trading hours, so always check a real-time source before converting large amounts.
Exchange rates are influenced by interest rate differentials between countries, inflation rates, trade balances, political stability, economic performance, and central bank monetary policy. Supply and demand in the foreign exchange (forex) market ultimately determine the rate at any given moment.
The buy rate (bid) is the price at which a bank or exchange service will buy foreign currency from you, while the sell rate (ask) is the price at which they will sell it to you. The difference between these two rates is called the spread, which represents the service provider's profit margin.
There is no guaranteed best time, as currency markets are highly unpredictable. However, mid-week (Tuesday through Thursday) often sees higher liquidity and tighter spreads. Avoid converting during holidays or weekends when markets are closed and spreads widen. For large conversions, consider using limit orders to lock in a target rate.
Online mid-market rates (the midpoint between buy and sell rates) are generally accurate and reflect real-time market conditions. However, the rate you actually receive when exchanging money will differ because banks and services add a markup. Always compare the offered rate against the mid-market rate to understand the true cost.
The forex market is the largest financial market in the world, with over $7 trillion traded daily. It operates 24 hours a day, five days a week, across major financial centers globally. Currencies are always traded in pairs (e.g., USD/EUR), and the exchange rate represents how much of one currency is needed to buy one unit of another.