How to Calculate Currency Conversions from Dollars to Anything

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If you travel internationally, you should understand the value of what you buy in dollars and the currency of the country you are visiting. Otherwise it is easy to get ripped off or spend more than you planned.

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Instructions

Difficulty: Moderately Challenging

Step1

Research the currency used by the country that you are going to visit. Your travel agent or the State Department can give you the name and the three letter abbreviation for the currency you will need. American dollars, for instance, are known as USD.

Step2

Find out the current value of your intended currency in dollars. Visit XE.com (see Resources below) for the current values of the main world currencies. You'll find a simple chart that displays the value of currencies in dollars. Type in the amount of money you are carrying. Pick which currency you want to convert from the drop-down menu. Then click “Go.” The amount and the conversion rate will display in the next window.

Step3

Use proportion and cross multiplying to calculate conversions from dollars to other currencies. Proportions are expressed as two fractions connected by an equal sign. Make sure that the same currency is in the numerator of both fractions. Let’s say that you want to calculate the conversion of ten dollars to Euros on a day when 0.69 Euros equals one dollar. Set the first fraction with $1 as the numerator and 0.69 Euros as the denominator. Put $10 in the numerator of the second fraction. The missing factor is the denominator of the second fraction, or, in this case, the number of Euros equal to $10.

Step4

Calculate the answer by multiplying the denominator of the first fraction, 0.69 Euros, by the numerator of the first fraction, $10. The answer is 6.9 Euros equals $10. No matter what the exchange rate is, this is how the math works. So, with a calculator and a good estimate of the current exchange rate, you can easily calculate currency conversions from dollars to anything.

Tips & Warnings

If you want to figure out how much money you have in a foreign currency, you can use the same formula. Just make sure that you set up the proportion so that both numerators and both denominators are in the same currency.