Currency & Inflation Calculators
Convert currencies and understand inflation's impact on your money with our free online calculators. Whether you are traveling abroad, sending international payments, or analyzing how purchasing power changes over time, our tools deliver real-time data and clear results.
Currency Calculator
Convert between world currencies using up-to-date exchange rates.
Inflation Calculator
Calculate how inflation affects purchasing power and compare the value of money over time.
Gold Calculator
Calculate the value of gold by weight and purity based on current market prices.
Historical Exchange Rate Calculator
Look up past currency exchange rates and calculate historical conversions for any date.
Deposit Calculator
Calculate the interest earned on bank deposits with various compounding frequencies.
Futures Price Calculator
Calculate theoretical futures prices based on spot price, interest rate, and time to expiry.
How to Choose the Right Currency Calculator
If you need to convert an amount from one currency to another for travel planning, online purchases, or business transactions, the currency calculator provides quick and accurate conversions using current exchange rates.
For travelers, remember that the exchange rate you see online may differ from what you receive at banks, airports, or ATMs due to service fees and markup. It is generally best to compare rates from your bank, credit card company, and local exchange services before your trip to find the most favorable option.
When dealing with larger international transfers, even small differences in exchange rates can translate to significant amounts. Our calculator helps you benchmark the mid-market rate so you can evaluate whether a particular service is offering competitive terms.
Understanding Currency Exchange and Inflation
Currency exchange rates represent the price of one currency in terms of another. These rates are determined by the foreign exchange market (forex), the largest financial market in the world with over $7.5 trillion traded daily. Exchange rates fluctuate constantly based on economic factors including interest rates, inflation, trade balances, and geopolitical events.
The mid-market rate (also called the interbank rate) is the midpoint between the buy and sell prices of two currencies on the open market. This is the fairest exchange rate and the one most online converters display. However, when you actually exchange money, banks and services add a markup or fee, so the rate you receive is typically less favorable than the mid-market rate.
Inflation is closely related to currency value. When a country experiences higher inflation than its trading partners, its currency typically weakens because its purchasing power decreases relative to other currencies. Central banks use interest rate adjustments as a primary tool to manage inflation and stabilize their currency's value.
For international investors, currency fluctuations add another layer of risk and potential return. A foreign investment might perform well in its local currency but deliver different results when converted back to your home currency. Understanding these dynamics is important for anyone with international financial exposure.
Frequently Asked Questions
How are currency exchange rates determined?
Exchange rates are primarily determined by supply and demand in the foreign exchange market. Key factors include interest rate differentials between countries, inflation rates, economic growth indicators, political stability, and trade balances. Central bank policies, such as the Federal Reserve's interest rate decisions, have particularly strong impacts on currency values.
What is the best way to exchange currency for international travel?
The most cost-effective options are typically using a no-foreign-transaction-fee credit card for purchases, withdrawing local currency from ATMs abroad using a debit card with low foreign fees, or ordering currency from your bank before your trip. Avoid airport currency exchange kiosks and hotel exchange services, as they typically charge the highest markups of 5% to 10% above the mid-market rate.
Why does the exchange rate I receive differ from what I see online?
Online converters typically show the mid-market rate, which is the wholesale rate banks use among themselves. When you exchange currency through retail channels, the provider adds a markup or spread to earn a profit. This spread varies widely: banks typically charge 1% to 3%, credit cards 0% to 3%, and airport kiosks 5% to 10% or more.
How does inflation affect currency value?
Higher inflation generally weakens a currency because it erodes purchasing power. If the U.S. experiences 3% inflation while Europe has 1%, the dollar tends to weaken against the euro because each dollar buys less over time relative to the euro. Central banks raise interest rates to combat inflation, which can attract foreign investment and temporarily strengthen the currency.