Where the exchange rates come from
This converter uses the euro foreign exchange reference rates published by the European Central Bank (ECB). The ECB publishes them once a day, at around 16:00 Central European Time on working days, based on market rates at about 14:15. There are no rates at weekends or on TARGET holidays, so the latest working day's rates are used.
Reference rates are mid-market rates: halfway between the price at which banks buy and sell a currency. They are ideal for checking prices, budgeting a trip or comparing quotes, but they are not the rate you will be offered when you actually exchange money.
How cross rates are calculated
The ECB quotes every currency against the euro, for example 1 EUR = x GBP and 1 EUR = y USD. To convert between two non-euro currencies, the calculator works out a cross rate:
Rate (A → B) = (B per euro) ÷ (A per euro)
Converted amount = amount × rate
The inverse rate (1 ÷ rate) tells you how much of the first currency one unit of the second is worth, which is useful when a price is quoted the other way round.
Worked example 1: US dollars to pounds (hypothetical rates)
Convert $500 to pounds, assuming 1 EUR = 1.08 USD and 1 EUR = 0.86 GBP
These rates are made up for illustration only; the calculator always shows the latest published rates.
Cross rate USD → GBP = 0.86 ÷ 1.08 = 0.796296
Converted amount = 500 × 0.796296 = £398.15
Inverse rate: 1 GBP = 1 ÷ 0.796296 = 1.25581 USD
Worked example 2: pounds to euros (hypothetical rate)
Convert £1,000 to euros, assuming 1 EUR = 0.86 GBP
Rate GBP → EUR = 1 ÷ 0.86 = 1.16279
Converted amount = 1,000 × 1.16279 = €1,162.79
If a bureau de change offers 1.12 instead, you would receive €1,120, so the margin costs you about €42.79 (around 3.7%).
Worked example 3: checking a card payment abroad
A €45.00 restaurant bill, hypothetical mid-market rate 1 EUR = 0.86 GBP
Mid-market value = 45 × 0.86 = £38.70
If your statement shows £40.12, the extra £1.42 (about 3.7%) is the card's exchange margin and any non-sterling transaction fee.
If the terminal offered to charge you in pounds (dynamic currency conversion) and you accepted, the rate is set by the merchant's provider and is often worse still.
Why your bank's rate is different
- Spread or margin: banks, bureaux de change and airports buy currency below and sell above the mid-market rate. Airport and hotel desks often have the widest margins.
- Fees: many debit and credit cards add a non-sterling transaction fee (often around 2.75–2.99%) and sometimes a fixed fee for cash withdrawals abroad.
- Timing: markets move all day, while the ECB reference rate is a single snapshot per working day.
- Dynamic currency conversion: when a card machine or cash machine abroad asks whether to pay in pounds or the local currency, choosing the local currency is usually cheaper.
- Travel cards and some app-based accounts charge little or no margin on weekdays, so it is worth comparing their quote with the reference rate shown here.
Tips for getting a good exchange rate
- Compare any quote with the reference rate: the percentage difference is the true cost of the exchange.
- Look at the amount you will receive, not just a headline 'commission-free' claim, as costs are often built into the rate.
- Avoid changing money at the last minute at airports or ports.
- For large transfers, such as buying property abroad, specialist transfer services usually beat high-street bank rates.
- Rates can change significantly over weeks or months; if you need a fixed amount in future, some providers offer forward contracts.
Currencies available
You can convert between the British pound (GBP), euro (EUR), US dollar (USD), Swiss franc (CHF), Japanese yen (JPY), Canadian dollar (CAD), Australian dollar (AUD), Swedish krona (SEK), Norwegian krone (NOK), Danish krone (DKK), Polish złoty (PLN), Chinese yuan (CNY), Turkish lira (TRY), Brazilian real (BRL), Indian rupee (INR), South Korean won (KRW), Mexican peso (MXN) and others published by the ECB.
If a currency is not in the ECB's daily list, a rate may not be available.