How to Convert Euros to US Currency

Written by philip cooper
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How to Convert Euros to US Currency
Pay attention to whether you have to multiply or divide. (Calculator image by Alhazm Salemi from Fotolia.com)

Converting from one currency to another is something that most people find a little daunting. However, think the process through, and converting from euros to U.S. dollars is fairly easy. Understand that in converting from one currency to another you are effectively buying the currency you are converting to and selling the currency you are converting from. The difficult thing to remember is whether you should be multiplying or dividing as you convert from one currency to another. The rule is that if the currency you are buying is a whole unit, you multiply the exchange rate by the number of units you are buying. However, if the currency you are selling is a whole unit you divide the exchange rate into the number of units you are selling.

Skill level:
Moderately Challenging

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Instructions

    Converting a Specific Euro Amount

  1. 1

    Calculate how many euros you want to convert to dollars.

    How to Convert Euros to US Currency
    One whole unit of euro is equal to several small units of dollars. (euro image by Bosko Martinovic from Fotolia.com)
  2. 2

    Imagine that you want to convert 1,000 euros. Look up the exchange rate in the economic section of the Financial Times or the Wall Street Journal, or look it up on the BBC or CNN economic pages or other exchange rate sources on the Internet.

  3. 3

    Write down the euro/dollar rate on a piece of paper. The party that quotes the rates always quotes a buy rate (left side) and sell rate (right side). Imagine that the rate is 1.2050 (euro buy) -1.2055 (euro sell). This means that for every 1 euro you sell you receive 1.2050 dollars and for every 1 euro you buy you must give 1.2055 dollars. You want to sell your 1,000 euro and buy the dollar equivalent of that amount. The rate you need to use is the euro buying rate, which in this case is 1.2050.

  4. 4

    Convert your 1,000 euro to dollars by multiplying the number of euros you want to convert by the euro buying rate of 1.2050 (1000x1.2050=1,205 dollars). Your 1,000 euros are worth 1,205 dollars.

    Converting a Specific Dollar Amount

  1. 1

    Calculate how many dollars you want to convert from euros.

    How to Convert Euros to US Currency
    Several smaller units of dollars are equal to one whole unit of euro. (dollars image by peter Hires Images from Fotolia.com)
  2. 2

    Imagine that you want to buy 1,000 dollars by selling euros. Look up the exchange rate in the economic section of the Financial Times or the Wall Street Journal newspaper, or check the BBC or CNN economic pages on the Internet.

  3. 3

    Write down the euro/dollar rate. In our example, the rate is 1.2050 (euro buy) -1.2055 (euro sell). This means that for every 1 euro you sell you receive 1.2050 dollars and for every 1 euro you buy you give 1.2055 dollars. You want to buy 1,000 dollars and sell the euro equivalent of that amount. The rate you need to use is the euro buying rate of 1.2050.

  4. 4

    Convert your euro into 1,000 dollars by dividing the number of dollars you want to convert to by the euro buying rate of 1.2050 (1000/1.2050=829.88 euros). Your 1,000 dollars are worth 829.88 euros.

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