Currency Converter Guide: Exchange Rates Explained
Convert currencies with live rates. Full guide explaining exchange rates, spreads, fees, and how to get the best rate for international transfers.
Currency Converter — Direct Answer
To convert currency: Amount × Exchange Rate = Converted Amount. If USD/EUR = 0.92, then $100 = €92. Exchange rates change constantly. Banks and services add 1–5% above the mid-market rate — that's where you lose money. Use this guide to calculate exact conversion and avoid fee traps.
→ Convert currencies with our free tool
How to Convert Currency
Simple multiplication. But the rate you get depends on where you convert. Converted = Amount × Rate
Effective Rate = Rate × (1 − Fee%)
Where:
- Rate = exchange rate (e.g., USD/EUR = 0.92)
- Fee = markup over mid-market rate
How to read exchange rates
USD/EUR = 0.92 means 1 USD = 0.92 EUR. EUR/USD = 1.087 means 1 EUR = 1.087 USD. They're reciprocals: 1 ÷ 0.92 = 1.087.
How to apply the formula
Example: $500 USD to EUR at 0.92
- Converted = 500 × 0.92 = €460
Example: €1,000 to USD at 1.087
- Converted = 1,000 × 1.087 = $1,087
How to calculate with fees
If your bank charges 3% above mid-market: - Effective rate = 0.92 × 0.97 = 0.8924 - $500 × 0.8924 = €446.20 (lost $13.80 to fees)
Common Currency Pairs Chart
Major currency pairs
| Pair | Typical Rate Range |
|---|---|
| USD/EUR | 0.85–0.95 |
| USD/GBP | 0.75–0.85 |
| USD/JPY | 140–160 |
| USD/CAD | 1.30–1.40 |
| USD/AUD | 1.45–1.55 |
| USD/CHF | 0.85–0.95 |
| USD/CNY | 7.00–7.30 |
| USD/INR | 82–86 |
| USD/PKR | 275–285 |
Where you get the best rates
| Source | Markup Above Mid-Market |
|---|---|
| Mid-market rate | 0% (baseline) |
| Wise | 0.4–1.0% |
| Revolut | 0–0.5% |
| Bank wire | 2–4% |
| Credit card FX | 3% |
| ATM abroad | 3–5% |
| Airport kiosk | 8–15% |
| Hotel front desk | 10–20% |
Common Currency Conversion Mistakes
Mistake 1: Using the wrong direction
If USD/EUR = 0.92, multiplying $100 × 0.92 = €92. Multiplying €100 × 0.92 doesn't give USD.
Fix: Confirm which currency is the base. USD/EUR means 1 USD = 0.92 EUR.
Mistake 2: Ignoring the spread
The "rate" a bank shows includes their markup. Real rate is lower.
Fix: Check the mid-market rate first (Google "USD to EUR"). Compare to bank rate.
Mistake 3: Converting at airports
Airport kiosks charge 8–15% markup. On $1,000, that's $80–150 lost.
Fix: Use Wise, Revolut, or your bank's online transfer. Never airport kiosks.
Cheapest Ways to Convert Currency
For small amounts (under $500)
- Revolut / Wise card — 0.4–1.0% markup
- Credit card with no FX fee — 0% (Chase Sapphire, Capital One Venture)
- Local ATM abroad — 1–3% + ATM fee
For medium amounts ($500–$5,000)
- Wise transfer — 0.4–0.8% + small fixed fee
- Revolut premium — 0% up to monthly limit
- Bank wire — 2–4% (avoid unless other options unavailable)
For large amounts ($5,000+)
- Wise Business — 0.35–0.6%
- OFX / TorFX — 0.3–0.8%
- Interactive Brokers — 0.002% + $2 minimum
Currency Converter FAQ
How do I convert currency?
Amount × Exchange Rate = Converted Amount. If USD/EUR = 0.92, $100 = €92.
What is the mid-market rate?
The rate banks use to trade with each other — no markup. It's the "real" rate. Google and XE show it.
Why are exchange rates different everywhere?
Each provider adds their own markup (spread) on top of the mid-market rate. The bigger the markup, the worse your rate.
How do I get the best exchange rate?
Use Wise, Revolut, or a no-FX-fee credit card. Avoid airport kiosks, hotel desks, and bank wires for small amounts.
Are exchange rates the same for buying and selling?
No. The buy rate (when you buy foreign currency) is higher than the sell rate (when you sell foreign currency). The difference is the spread.
Next Steps for Currency Exchange
- Currency Converter — Live rates
- Conversion Calculator — Units
- Compound Interest Calculator — Growth
- Sales Tax Guide — Tax
- Interest Formulas Guide — Interest
Last updated October 2026. Exchange rates change constantly — always verify before transacting.