How to Calculate Currency Rates

Currency rates can be calculated manually or with a currency calculator.

Calculating currency rates will need to be done if you plan to travel to another country or you want the value of the dollar in another country's currency. Currency rates can also be calculated if you want to determine the amount from foreign stock that pays a dividend. You can calculate the currency rates for a variety of countries manually, or you can use an online currency calculator.

Manual Calculation

Step 1

Go to the Bloomberg website to view the Benchmark Currency Rates table (see References). This is a table that displays the rates for eight major world currencies.

Step 2

Find the row for the U.S. dollar. This is indicated by the letters USD.

Step 3

Locate the rate for another country's currency in that country's column, such as AUD for Australia.

Step 4

Divide $1 by the exchange rate, such as .9198 for Australia. This is the amount of currency that you are getting for one U.S. dollar, and it means that 10 U.S. dollars will get you 10.802 Australian dollars.

Automatic Calculation

Step 1

Go to an online currency calculator, such as the one provided by Bloomberg (see Resources).

Step 2

From the drop-down menu, select the currency you want to convert from, such as the U.S. dollar.

Step 3

From the drop-down menu, select the currency to convert into, such as the Australian dollar.

Step 4

Enter the amount to convert, such as $10.

Step 5

Click the "Calculate" button to see the result.

Warning

Currency rates between countries constantly change, which means the value for your dollar will not stay the same from one minute to the next.

references & resources