Currency Converter
Convert between major world currencies.
| USD | → | EUR |
|---|
Currency Exchange: How It Actually Works
Most free currency converters give you a number and nothing else. The problem is that the number is usually the mid-market rate — the wholesale rate banks use to trade with each other — and that's almost never the rate you'll actually pay. Retail currency exchange is dominated by hidden spreads, upfront fees, and marketing fluff. This page gives you the mental model to navigate it.
This calculator is an educational tool, not a live-rate service. The rates shown are approximate reference values from early 2025, useful for back-of-envelope math and learning how the math works — but you should always verify a real-time mid-market rate before sending money, traveling, or making investment decisions. We'll cover where to check real rates below.
The important skills are: (1) recognizing the mid-market rate vs the rate you're actually quoted, (2) understanding the spread and fee structure each provider uses, and (3) picking the right tool — Wise, bank wire, credit card, ATM, or cash — for each specific job.
Mid-Market Rate, Bid, Ask, and Spread
In the wholesale foreign-exchange market, every currency pair has two prices at any moment:
- Bid — the highest price a buyer is currently willing to pay for one currency in exchange for another.
- Ask — the lowest price a seller is currently willing to accept.
- Mid-market rate — the midpoint between bid and ask. This is the rate you'll see on Google, Bloomberg, Reuters, or the ECB's reference rate page.
- Spread — the difference between bid and ask. On major pairs (EUR/USD, USD/JPY), the wholesale spread is less than 0.01%. At retail, the spread you pay is typically 0.3% to 5%.
Provider Markup— the percentage above mid-market each provider builds into the quoted rate- Airport kiosk markup: 5–15%. Bank wire markup: 1–4%. Credit card network (Visa/Mastercard): ~1%. Wise / Revolut: 0.3–0.8%
When a bank advertises "no fees on FX," read carefully: they usually mean no flat fee, while quietly building a 2–3% margin into the quoted exchange rate. The total cost is the visible fee plus the hidden spread. Always compare the all-in amount delivered to the recipient's account.
Worked Example — Sending $10,000 USD to EUR
Provider Comparison — Typical Fee Ranges
| Service | Typical Markup | Best For |
|---|---|---|
| Wise (mid-market + fee) | 0.3–0.8% | International transfers, multi-currency account |
| Revolut (standard plans) | 0.4–1.0% | Travel, occasional transfers, lower volume |
| No-foreign-fee credit card | ~1.0% | Travel spending abroad, online foreign purchases |
| Debit card with fee reimbursement (Charles Schwab, Fidelity) | ~1.0% + free ATM | Cash withdrawal abroad |
| Bank wire (major US bank) | 2–4% + $15–$50 flat | Avoid except large legal/real-estate transfers |
| PayPal international | 3–5% | Freelancer payouts (ease of use; expensive) |
| Airport / tourist currency kiosk | 5–15% | Avoid — last resort for tiny cash needs |
| Hotel exchange desk | 5–12% | Avoid — same as kiosk |
| Dynamic currency conversion (DCC) at foreign ATM/POS | 4–8% | Always decline — pay in local currency |
Always pay in local currency (not your home currency) when prompted. Decline dynamic currency conversion. Let Visa or Mastercard handle the conversion at their network rate — it's nearly always the cheapest option available in the moment.
Major USD Pairs — Mental Models
USD/EUR — The World's Most Traded Pair
The euro is the world's second reserve currency and EUR/USD is the most heavily traded currency pair in the foreign-exchange market, with typical wholesale spreads under 0.01%. The rate is driven primarily by the interest-rate differential between the US Federal Reserve and the European Central Bank (ECB). When the Fed raises rates faster than the ECB, USD strengthens; the reverse sends the euro higher. Historical range over the last decade: roughly 0.85–1.20 EUR per USD.
USD/GBP — The Cable
The British pound sterling against the dollar is called "cable" (a historical nickname from the transatlantic telegraph cable). The pound is typically worth more than the dollar — around 1 GBP = 1.20–1.30 USD in recent years — but that's a convention, not a sign of economic strength. Driven by the Bank of England's rate path, UK inflation, and post-Brexit trade data. Spreads at major providers: 0.3–0.6% above mid-market.
USD/JPY — Safe Haven and Carry Trade
The Japanese yen historically trades around 100–160 yen per dollar and serves two roles: a safe-haven currency that strengthens during global risk-off events, and a carry-trade funding currency because of Japan's ultra-low interest rates. Recent years have seen the yen weaken significantly as the Fed raised rates while the Bank of Japan held policy steady. Unlike most pairs, you typically quote "yen per dollar," not "dollars per yen" (e.g., 157 JPY = 1 USD).
USD/CAD — Loonie and the Oil Correlation
The Canadian dollar (nicknamed the "loonie") is tightly correlated with oil prices because oil is a major Canadian export. When crude oil prices rise, CAD strengthens against USD; when oil falls, CAD weakens. Typical range: 1.25–1.45 CAD per USD. The Bank of Canada typically moves in rough alignment with the Fed, but oil data can decouple the pair temporarily.
USD/MXN — Mexican Peso
The Mexican peso is one of the most heavily traded emerging-market currencies (Mexico is the US's largest trading partner). Typical rate: 18–22 MXN per USD. Driven by US-Mexico trade data, Banxico (Banco de México) policy, and nearshoring-related investment flows. MXN carry trades were particularly popular in 2023–24 because of high real yields. Retail spreads are wider than on major pairs — expect 1–2% at banks, 0.4–0.8% at Wise.
USD/CNY — Chinese Yuan (Renminbi)
The Chinese yuan (CNY, also called renminbi or RMB) is not a freely floating currency — the People's Bank of China manages it within a daily trading band around a reference rate. There are actually two rates: onshore CNY (trading inside mainland China) and offshore CNH (trading in Hong Kong and international markets). Typical range: 6.5–7.3 CNY per USD. CNY is not freely convertible for most retail purposes, so international transfers to/from China go through specific regulated channels.
ISO 4217 — Top Currency Codes Reference
The ISO 4217 standard assigns a three-letter code to every currency in the world. Banks, exchanges, SWIFT, and financial data APIs all use these codes. Knowing the top 20 lets you read financial headlines without a glossary:
| Code | Currency | Country / Region | Symbol |
|---|---|---|---|
| USD | US Dollar | United States | $ |
| EUR | Euro | Eurozone (20 countries) | € |
| JPY | Japanese Yen | Japan | ¥ |
| GBP | Pound Sterling | United Kingdom | £ |
| CNY | Chinese Yuan | China (onshore) | ¥ / 元 |
| AUD | Australian Dollar | Australia | A$ |
| CAD | Canadian Dollar | Canada | C$ |
| CHF | Swiss Franc | Switzerland, Liechtenstein | CHF |
| HKD | Hong Kong Dollar | Hong Kong SAR | HK$ |
| SGD | Singapore Dollar | Singapore | S$ |
| INR | Indian Rupee | India | ₹ |
| KRW | South Korean Won | South Korea | ₩ |
| MXN | Mexican Peso | Mexico | Mex$ |
| BRL | Brazilian Real | Brazil | R$ |
| NZD | New Zealand Dollar | New Zealand | NZ$ |
| SEK | Swedish Krona | Sweden | kr |
| NOK | Norwegian Krone | Norway | kr |
| ZAR | South African Rand | South Africa | R |
| TRY | Turkish Lira | Türkiye | ₺ |
| AED | UAE Dirham | United Arab Emirates | د.إ |
How to Use This Converter
- Enter an amount in the source currency.
- Select the "From" and "To" currencies — or click the swap button to reverse direction.
- Read the converted amount and the exchange rate. Remember: this is the mid-market approximation, not a live trading rate.
- For any real transaction, verify the rate against a primary source — Google, XE, OANDA, the ECB Reference Rates page, or the Wise website — immediately before confirming the transfer.
- Compare the all-in cost (visible fees plus the spread above mid-market) across providers before sending money.
Methodology & Assumptions
- Rates are static reference values from approximately January 2025 — not live market rates.
- Conversion formula:
result = amount × (rate_to / rate_from)where both rates are expressed relative to USD. - No spread, fees, or provider markups are applied — the converter shows the idealized mid-market conversion only.
- Cross-rates are calculated through USD as the base — real-world cross-rate trading may show small deviations.
- Inverse rate = 1 / rate; used to show the opposite direction.
Glossary
- Mid-market rate
- The midpoint between the bid and ask prices in the wholesale interbank FX market. The "real" rate used by banks trading with each other. Also called interbank or spot rate.
- Bid / Ask
- Bid is the highest price a buyer will pay; ask is the lowest price a seller will accept. The difference is the spread.
- Spread
- The gap between bid and ask. Wholesale spreads are razor-thin (under 0.01% on majors); retail spreads are 0.3–5% depending on provider.
- ISO 4217
- The international standard assigning three-letter codes to currencies (USD, EUR, JPY, etc.) used by banks, exchanges, SWIFT, and financial data systems.
- Pip
- "Percentage in point" — the smallest standard price movement in a currency pair, typically 0.0001 for most pairs or 0.01 for JPY pairs. Used to measure spread and movement.
- Foreign transaction fee
- A fee (typically 1–3%) that many US credit cards add to purchases made in foreign currencies. No-foreign-fee cards waive this.
- Dynamic currency conversion (DCC)
- A point-of-sale conversion offered at foreign terminals that lets you pay in your home currency — at a heavily marked-up rate. Always decline.
- Carry trade
- Borrowing in a low-interest-rate currency (historically JPY) and investing in a high-interest-rate currency for the yield differential.
- Safe-haven currency
- A currency that tends to strengthen during global stress — traditionally USD, CHF, and JPY.
- Cable
- Trader nickname for the GBP/USD currency pair, dating to the 19th-century transatlantic telegraph cable used to trade it.
- CNY vs CNH
- CNY is the onshore Chinese yuan (trading inside mainland China); CNH is the offshore yuan (trading in Hong Kong). Rates can differ slightly.
Frequently Asked Questions
The midpoint between bid and ask in the wholesale interbank FX market — the "real" rate banks use to trade with each other. Google, Bloomberg, Reuters, and the ECB all show this rate. As a retail customer, you almost always pay a margin above it.
The gap between the highest buy price and lowest sell price. Wholesale spreads on major pairs are under 0.01%; retail spreads are typically 0.3–5% depending on the provider. Banks and airport kiosks are the most expensive; Wise is among the cheapest.
Supply and demand driven by interest rate differentials, inflation, trade balances, political stability, and central bank actions. Raising rates strengthens a currency (capital inflows); cutting rates weakens it. Majors move 0.3–1% per day; emerging markets move more.
(1) No-foreign-transaction-fee credit card (~1% above mid-market), (2) ATM withdrawals on a debit card that reimburses foreign fees (Schwab, Fidelity), or (3) Wise/Revolut (0.3–0.8%). Avoid airport kiosks, hotel exchanges, and dynamic currency conversion.
A UK-founded money transfer service that uses mid-market rates with transparent upfront fees (0.3–1%). Often 3–10× cheaper than a bank wire, which typically hides a 2–5% FX margin plus a $15–$50 flat fee.
The international standard for three-letter currency codes — USD, EUR, GBP, JPY, CNY, INR, MXN, and so on. Used by banks, SWIFT, exchanges, and financial data systems worldwide.
Two hidden fees: (1) a spread above mid-market (1–4% for retail), baked into the quoted rate, and (2) flat wire or ATM fees. A $10,000 transfer at a bank with 3% spread costs the customer ~$300 in invisible FX plus the $35 wire fee; Wise would be ~$50 all-in.
Never. DCC is the "pay in your home currency?" prompt at foreign ATMs or POS — typically 4–8% above mid-market. Always pay in the local currency and let Visa or Mastercard handle conversion at their ~1% network rate.
Majors: USD, EUR, JPY, GBP, CHF, CAD, AUD, NZD — tight spreads, deep liquidity. Minors include SEK, NOK, MXN, KRW. Exotics (THB, TRY, ARS, NGN, etc.) have wider spreads, higher volatility, and sometimes capital controls.
No — this is an educational tool using approximate 2025 reference rates. For real transactions, always verify a live mid-market rate via Google, XE, OANDA, the ECB Reference Rates page, or Wise immediately before confirming.