How are exchange rates determined?

Exchange rates are set by the foreign exchange (forex) market, which operates 24/7. Rates fluctuate based on economic indicators, interest rates, inflation, and geopolitical events.

Why does my bank rate differ from the calculator?

Banks and currency services add a markup (spread) of typically 1–5% to the mid-market rate. Always compare rates before transferring large amounts.

How many currencies are supported?

We support 30+ major world currencies including USD, EUR, GBP, JPY, CAD, AUD, CHF, CNY, and INR. Rates are updated daily.

Are the exchange rates real-time?

Rates are updated once daily. For large transactions requiring live rates, consult a dedicated forex broker or your bank directly.

Currency Converter — Convert Between Major Currencies

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⚠️ Rates are indicative and updated periodically. For live rates, check your bank or a financial service.

About the Currency Converter

Currency exchange rates fluctuate continuously during forex trading hours. Rates in this calculator are the mid-market rate — the midpoint between buy and sell rates. Actual transaction rates from banks and currency exchanges include a spread (the margin between what they buy and sell at) plus sometimes a fixed fee, making them less favourable than the mid-market rate shown here.

Exchange rate types explained

Mid-market rate — the midpoint between buy and sell rates. Used by Google, XE, and financial data services. This is the "true" rate.
Buy rate — the rate a bank pays when buying foreign currency from you. Always lower than mid-market.
Sell rate — the rate a bank charges when selling foreign currency to you. Always higher than mid-market.
Tourist rate — airport and hotel exchange rates, often 5-15% worse than mid-market.

How to get the best exchange rate

Use a travel debit card (Wise, Revolut, Starling) that charges the mid-market rate with transparent fees. Avoid airport exchanges and "Dynamic Currency Conversion" when paying by card abroad — always choose to pay in the local currency and let your card do the conversion.

Exchange rates and purchasing power parity

Exchange rates reflect currency supply and demand in forex markets but do not always reflect actual purchasing power differences between countries. Purchasing Power Parity (PPP) measures how much a standard basket of goods costs in each country converted to a common currency. The Economist's Big Mac Index is a well-known informal PPP measure.

Market rate — reflects capital flows, trade balances, and investor sentiment
PPP rate — reflects the cost of living; more relevant for comparing salaries and living standards
Real exchange rate — nominal rate adjusted for inflation differences between countries
Currency pegs — some countries fix their currency to USD or a basket; Saudi Riyal and Hong Kong Dollar are pegged

Frequently Asked Questions

What is the mid-market exchange rate?

The mid-market rate is the midpoint between the buy and sell rates in the interbank forex market. It is the rate shown by Google, XE, and financial data providers. Banks add a margin above this rate when selling you foreign currency, and below it when buying from you. The difference is their profit.

Why is the airport exchange rate so bad?

Airport currency exchanges face limited competition and charge high margins, sometimes 10-15% above mid-market. Always order currency in advance online or use a travel debit card that charges mid-market rates. If you must exchange at an airport, pre-order online for airport collection rather than buying at the counter.

Should I use Dynamic Currency Conversion when paying abroad?

No. DCC lets the merchant terminal convert your payment to your home currency at the point of sale, always at a worse rate than your card would offer. Always choose to pay in the local currency and let your bank or card provider handle the conversion.

What is a currency spread?

The spread is the difference between a bank's buy rate and sell rate. A bank buying and selling GBP/EUR with a spread of 0.03 makes that margin on every exchange transaction. Low-cost providers like Wise charge a small transparent percentage on the mid-market rate rather than hiding profit in the spread.

How do I calculate a currency conversion manually?

Multiply the amount by the exchange rate. 500 GBP x 1.18 (GBP/EUR rate) = 590 EUR. To convert back: divide. 590 EUR / 1.18 = 500 GBP. Note which currency is the base (first) and which is the quote (second) in the rate — the direction matters.