Exchange Rate Calculator
Convert currencies and calculate cross exchange rates
Currency Exchange Calculator
1 USD = 0.920000 EUR
Conversion Result
Forward Rate
1 USD = 0.920000 EUR
100 USD = 92.00 EUR
Inverse Rate
1 EUR = 1.086957 USD
100 EUR = 108.70 USD
Example: Cross Rate Calculation
Scenario
You're traveling from Europe to UK and want to know the EUR/GBP exchange rate. You only have rates against USD.
Given Information
• EUR/USD rate = 1.09 (1 Euro = 1.09 US Dollars)
• GBP/USD rate = 1.27 (1 Pound = 1.27 US Dollars)
• Find: EUR/GBP cross rate
Calculation Steps
1. Common currency (USD) is in same position for both pairs
2. Calculate: EUR/USD ÷ GBP/USD
3. Result: 1.09 ÷ 1.27 = 0.858
EUR/GBP = 0.858 (1 Euro = 0.858 Pounds)
Sample Exchange Rates
* Sample rates for demonstration. Use live rates for actual transactions.
Exchange Tips
Check rates from multiple sources
Be aware of exchange fees and commissions
Rates fluctuate throughout the day
Banks typically offer worse rates than Forex
Use cross rates to find best conversion path
Understanding Exchange Rates
What is an Exchange Rate?
An exchange rate is the price of one currency in terms of another. It represents how much of one currency you can get for a unit of another currency. Exchange rates are determined by supply and demand in the foreign exchange (Forex) market.
Currency Pairs
Currency pairs show the relationship between two currencies. The first currency is the base currency, and the second is the quote currency. For example, EUR/USD = 1.10 means 1 Euro equals 1.10 US Dollars.
What is a Cross Rate?
A cross rate is an exchange rate between two currencies calculated using their exchange rates against a third common currency (usually USD). This is useful when direct exchange rates aren't available or to find better conversion paths.
Cross Rate Formula
Cross Rate (A/B) = Rate (A/C) ÷ Rate (B/C)
Where C is the common currency (typically USD)
When to Use Cross Rates
🌍 Travel
When traveling between countries that don't have direct exchange services
💼 Business
For international transactions between non-major currency pairs
📈 Trading
Forex traders use cross rates to identify arbitrage opportunities
Factors Affecting Exchange Rates
- •Interest Rates: Higher rates attract foreign capital
- •Inflation: Lower inflation increases currency value
- •Economic Performance: Strong economy = stronger currency
- •Political Stability: Affects investor confidence
- •Trade Balance: Surplus increases currency demand
- •Market Speculation: Can cause short-term volatility