Currency Calculator

Convert between currencies with real-time exchange rates or use a custom exchange rate for your calculations.

With Live Exchange Rate

Customized Currency Exchange Rate

Equivalent unit(s) of B compared to 1 unit of A

What is a Currency Calculator?

A currency calculator is a financial tool that allows users to convert amounts between different currencies using current or historical exchange rates. It's essential for international travelers, businesses engaged in international trade, and investors in foreign markets.

This calculator supports conversions between major world currencies with real-time exchange rates, as well as custom rate calculations for specific scenarios.

How Currency Exchange Works

Currency exchange rates represent the value of one currency in terms of another. These rates fluctuate constantly due to various economic factors including inflation rates, interest rates, economic stability, and geopolitical events.

Exchange rates can be expressed in two ways:

  • Direct quote: Shows how much domestic currency is needed to buy one unit of foreign currency (e.g., 1.15 USD for 1 EUR).
  • Indirect quote: Shows how much foreign currency is needed to buy one unit of domestic currency (e.g., 0.87 EUR for 1 USD).

Factors Affecting Exchange Rates

Inflation Rates

Countries with lower inflation rates typically see an appreciation in their currency value relative to countries with higher rates.

Interest Rates

Higher interest rates offer better yields to lenders, attracting more foreign capital and causing the currency to appreciate.

Balance of Payments

Countries with a trade surplus (exporting more than importing) typically see stronger currencies.

Political and Economic Stability

Stable countries with strong economic performance and low political risk attract more foreign investment, strengthening their currencies.

Types of Exchange Rates

Floating Exchange Rates

Rates that fluctuate based on supply and demand in the foreign exchange market. Most major currencies use this system.

Fixed Exchange Rates

Rates that are pegged to another currency or a basket of currencies, maintained by the central bank's intervention.

Managed Float

A hybrid where the exchange rate generally floats but the central bank intervenes when the currency moves outside desired boundaries.

Currency Exchange Tips

  • Be aware of exchange fees and commissions when converting physical currency.
  • Banks often offer less favorable exchange rates than the market rate shown in this calculator.
  • For large amounts, consider using specialized forex services instead of banks to get better rates.
  • Exchange rates are typically more favorable in the destination country than at airports or tourist areas.
  • Consider currency hedging for businesses dealing with large international transactions to minimize exchange rate risk.

How to Use This Currency Calculator

  1. Enter the amount you want to convert in the 'Amount' field.
  2. Select the currency you're converting from in the 'From' dropdown.
  3. Select the currency you're converting to in the 'To' dropdown.
  4. Click the 'Calculate' button to see the result with the latest exchange rate.
  5. For custom conversions, use the 'Customized Currency Exchange Rate' section to set your own rate.
  6. You can download the results or view the market exchange rates table for reference.

The calculator automatically updates with the latest market exchange rates for the most accurate conversions.