Using an exchange rate calculator is a fast and simple way to figure out foreign exchange rates without looking up rates and then doing the math using an exchange rate calculator to do so. Using the exchange rate calculator allows you to convert one country’s currency to another with just a few clicks of a mouse, and no guess work and confusing mess for you because the data is always the most accurate available.
In just an instant the exchange rate calculator will do the math and provide us the conversion we need it’s that simple. So, whether you are planning a trip to a far off exotic land, cross referencing quotes for FOREX, sourcing data or transferring money to a friend or loved one overseas, the exchange rate calculator is the best way to get an accurate rate for hundreds of different countries worldwide.
If we have an international debit or credit card, using it while out of the country is one way to make purchases and withdraw cash but doing so incurs transactions fee and, if you do use it at ATMs, fees for those machines as well. To avoid losing money unnecessarily, exchange your home country’s currency for that of the foreign country you’re visiting and calculate how much you expect to receive in return before you head to the currency exchange counter.
Exchange rates calculator may seem simple on the surface, but it’s easy to confuse for those without much memory of mathematics. While converting $100 to foreign currency when traveling isn’t a big deal, converting currencies when analyzing a foreign stock’s financial statements can mean big differences for international investors. Let’s look at an example of how to calculate exchange rates:
Suppose that the EUR/USD exchange rate is 1.20 and you’d like to convert $100 U.S. dollars into euros. To accomplish this, simply divide the $100 by 1.20 and the result is the number of euros that will be received – 83.33 in that case. Converting euros to U.S. dollars involves reversing that process by multiplying the number of euros by 1.20 to get the number of U.S. dollars.
An easy way to remember this is to multiple across left to right and divides across right to left, with the ending currency being the desired output of the exchange rate calculation. In the example above, we divided across right-to-left to determine how many euros we could purchase with U.S. dollars and then multiplied across left-to-right to see how many U.S. dollars we’d receive from euros.
Reading and calculating exchange rates aren’t very difficult, but small errors can lead to big mistakes in some cases. International investors and travels alike can use free tools to help reduce the likelihood of making an error and double-check their own work before making a potentially costly mistake that’s difficult to undo. Here are some useful tools to use in:
- XE.com – Leading source of currency information that includes an exchange rate calculator for many major currencies around the world.
- Yahoo Finance – Leading portal for financial news and analysis that also has a useful exchange rate calculator for many major currencies.