💱 Currency Converter

How it works

An exchange rate is simply the price of one currency in terms of another — how many US dollars one Canadian dollar buys, for example. Rates float constantly, driven by interest rates, trade, commodity prices (the loonie tracks oil), and market mood. When you convert money, you never get the headline rate you see on Google: that is the mid-market rate, the midpoint between buying and selling prices, and every bank, card, or kiosk takes a cut via a spread or fee on top.

This calculator converts an amount at a given rate, factoring in any fee or spread, so you see what actually lands — the number that matters for travel, cross-border shopping, or sending money home.

The formula

Converted amount = amount × exchange rate, where the rate is quoted as units of target currency per one unit of source currency (e.g., 0.73 USD per 1 CAD). With a fee or spread f as a decimal: you receive = amount × rate × (1 − f). To go the other direction, divide by the rate instead of multiplying. Quoted pairs flip easily: if 1 CAD = 0.73 USD, then 1 USD = 1 / 0.73 ≈ 1.37 CAD.

Worked example

Converting $1,000 CAD at a mid-market rate of 0.7350 USD per CAD: the pure rate gives $735.00 USD, but nobody gets that. With your bank's 2.5% spread, the effective rate is 0.7166 and you receive ≈ $716.63 USD — the $18.37 gap is the bank's cut. A no-foreign-transaction-fee card (~1% spread) would have given ~$727.65.

Frequently asked questions

Why is the rate at my bank worse than on Google?
Google shows the mid-market rate — the midpoint, not a consumer price. Banks and kiosks buy low and sell high around it; the gap is their pay. Airport kiosks have the widest spreads of all.

Should I convert cash before travelling or use my card abroad?
Usually the card wins: ~2.5% over mid-market beats most cash spreads, and no-foreign-transaction-fee cards are better still. Carry some local cash, but put big spending on the card.

How often do rates change?
Constantly during market hours. For big transfers you can lock a rate; for travel spending, daily moves rarely matter enough to time.

The rate on the screen is a wholesale price

The exchange rate quoted by search engines and converter tools is the mid-market rate, the midpoint between what banks charge each other to buy and sell a currency. It is a useful reference point, but no consumer actually transacts at it. Every bank, card network, and currency kiosk moves the rate in its own favour and keeps the difference, called the spread. That is not a scam; it is how the service is paid for. The mistake is budgeting as if the spread did not exist.

Typical costs in Canada run about 2% to 4% at a bank branch or its app, and around 2.5% in foreign transaction fees on most credit cards, charged on top of the card network's rate, which itself sits close to mid-market. Specialist transfer services compete mainly by narrowing that spread.

A worked example

You are converting $2,500 Canadian into US dollars for a trip, and the mid-market rate is 0.7200, so in theory your money is worth US$1,800. Your bank's rate is 0.7020, a 2.5% spread, which gives you US$1,755. The conversion quietly cost you $45, even though no fee appeared on any receipt.

Now run the same spending through a typical credit card abroad. A US$1,800 hotel bill converts at roughly the network rate to $2,500 Canadian, and then the 2.5% foreign transaction fee brings the charge to $2,562.50. Knowing this in advance lets you compare honestly: the card's rewards or travel insurance might be worth $62.50 to you, or a low-fee card or prepaid option might win.

Where you convert matters as much as when. Airport kiosks and hotel desks are famously expensive, sometimes pricing 10% or more away from the mid-market rate, because they sell convenience to people who cannot shop around. Foreign ATMs usually beat them, provided you decline the machine's offer to convert for you, which is dynamic currency conversion wearing another hat. For a large, planned expense, some Canadians convert gradually over a few paycheques, trading the hope of a perfect rate for protection against a sudden drop. You will rarely catch the best rate of the year, but you will also never be forced to buy everything at the worst one.

Watch out for these traps

• Paying in your home currency overseas. Terminals that offer to bill you in Canadian dollars, called dynamic currency conversion, use the merchant's rate, which is usually the worst rate in the whole chain. Choose the local currency and let your card convert.
• Losing the spread twice. Converting money, coming home with leftovers, and converting back costs you the margin on both trips. Spend down or keep leftovers for the next trip when you can.
• Assuming today's rate holds. Rates move daily, and card purchases are converted at the rate in effect when the transaction is processed, not always the day you tapped.

Frequently asked questions

Why does my bank give me a worse rate than the one I see online?

The online figure is the mid-market rate, a wholesale benchmark between banks. Your bank adds a spread, typically 2% to 4%, as its margin for providing the exchange. That spread is the real price of the conversion, even when the bank advertises no fee. Comparing providers by their spread beats comparing their fee schedules.

What is a foreign transaction fee on a credit card?

It is a surcharge, about 2.5% on most Canadian cards, added to purchases made in another currency. The card network first converts the purchase at a rate close to mid-market, then the issuer adds the fee on top. A US$100 purchase can therefore carry roughly $2.50 in extra cost per $100, beyond the exchange itself.

Should I pay in Canadian dollars or the local currency when travelling?

Choose the local currency. When a terminal offers to charge you in Canadian dollars, a service called dynamic currency conversion sets the rate, and it is usually the least favourable rate available. Paying in the local currency lets your own card's rate and fee apply instead, which is almost always cheaper overall.

When is the exchange rate set for a card purchase abroad?

Usually when the transaction is processed or posted, which can be a day or two after you tap or swipe, rather than at the moment of purchase. Because rates move daily, the amount that appears on your statement can differ slightly from your estimate at the till. The gap is normally small, but it exists.