How to Convert Currency

Whether you're traveling, shopping online, or sending money abroad, converting currency is something everyone does. Here's how it works.

What is an exchange rate?

An exchange rate is the price of one currency in terms of another. For example, if the EUR/USD rate is 1.08, then 1 euro buys 1.08 US dollars.

How to convert currency

To convert an amount, multiply it by the exchange rate:

Amount in currency B = Amount in currency A × Rate

Example: You have €100 and the EUR/USD rate is 1.08. 100 × 1.08 = $108.

Mid-market rate vs. what banks charge

The mid-market rate is the real exchange rate between two currencies. Banks and money changers add a markup on top, so you get a slightly worse rate. That markup is how they make money.

• Mid-market rate: the fair rate, used by our converter
• Bank rate: includes a markup (often 1–3%)
• Airport rate: usually the worst — avoid if you can

Most-traded currencies

• USD — US Dollar (world's reserve currency)
• EUR — Euro (used by 20+ European countries)
• JPY — Japanese Yen
• GBP — British Pound
• CAD / AUD / CHF — Canadian, Australian dollars, Swiss franc

Why rates change

Exchange rates move constantly based on supply and demand, interest rates, inflation, and economic news. That's why it's best to check live rates when you need to convert.

Key takeaways

• Multiply your amount by the exchange rate to convert
• Use the mid-market rate for a fair comparison
• Banks add a markup — shop around
• Rates change constantly, so check live