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Euro to US Dollar Conversion Formula

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The Formula

To convert from euros to dollars take the amount of euros and multiple it by the current exchange rate found on www.oanda.com. Let's say you want to know what €54.34 equals in US currency. As I write this, the exchange rate is 1.27606.

So €54.34(1.27606)=$69.34. To go the other way, take divide one by the exchange rate (e.g. 1/1.27606=0.78366). Then do the formula again this time multiplying the dollars. $69.34(0.78366)= €54.34.

That's really all there is to it. The only tricky part is making sure you have the correct exchange rate. (It changes daily. Well actually it changes every minute.) As I mentioned, you can check OandA's website for that info. That was a beautiful segue into my next paragraph.

The Rise and Fall (sound dramatic, doesn't it?)

Currency prices move against each other. One goes up. The other comes down. Guess what, if you buy the currency before it goes up and then sell it, you'll profit.

If you've never considered trading forex (that's the name for trading currencies), perhaps you should. It has become very popular recently. However, not necessary for good reasons. Many are attracted to it because of the promises of fast and easy money.

I'm going to be brutally honest with you. Trading forex profitably is neither easy money nor fast money. It can be hard. It can be frustrating. So then, why the heck do I recommend you trade it?

The reason is really simple. Whatever currency is your own (the US dollar, the Australian dollar, British pound, Mexican peso, etc.), is it totally stable and never inflating? If you answered yes, you are wrong. Go the back of the class. Do not pass go.

Seriously, currency trading is a great hedge. You own currency can lose value, perhaps quickly. But if you're invested in other country's money, it doesn't matter (at least not as much).

I personally believe foreign currency is a better hedge than gold. But that is another topic for another time.

There is a lot of hype and misinformation about forex. Read the articles on this website. You'll find a listing of them in the Article Map. That will steer you in the right direction.

So, use your formula. Convert some euros to dollar and then back again. And make a profit.