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How to calculate exchange rates
To calculate an exchange rate, simply multiply your home currency by the current rate.
When dealing with currency exchange, it's essential to know how to convert between your local currency and a foreign currency. Here's a straightforward guide to help you understand the process.
Converting Local Currency to Foreign Currency
To convert your local currency (e.g., AUD) to a foreign currency (e.g., USD), you need to multiply the amount by the exchange rate. For example, if the exchange rate is 0.65, you can calculate it as follows:
Example:
This means AUD 100 is equivalent to USD 65.
Converting Foreign Currency to Local Currency
To find out how much a foreign currency amount will cost in your local currency, you need to divide the foreign amount by the exchange rate. Using the same exchange rate of 0.65, here's how you can do it:
Example:
- USD 100 / 0.65 = AUD 153.85
This means USD 100 is equivalent to AUD 153.85.
By understanding these simple steps, you can easily manage your currency conversions and make informed financial decisions.
Remember, the equivalent foreign currency value you receive may vary depending on whether you're buying or selling, and may include fees or margins. For the most accurate result, use our currency exchange rate calculator.
New to FX? Get the lowdown on currency jargon to better understand the key terms and what they mean for your foreign currency.
After calculating your currency conversion, you may want to consider buying currency at a suitable rate. You can convert your dollars with Travelex, either online or in-store across Australia. Lock-in our best exchange rates* when you order online.
