Convert currencies online: euro, dollar, pound and more
Instantly convert major world currencies. EUR/USD, EUR/GBP, real-time rates and understanding exchange rates.
Published on January 12, 2026Currency conversion is necessary for international travel, online shopping, money transfers and investments. Understanding how exchange rates work and the difference between the interbank rate and the rate applied by banks or exchange offices helps save money on every transaction.
Understanding the conversion
The exchange rate expresses the value of one currency relative to another. There are two types of rates: the interbank rate (reference rate between major banks, also called the market rate or 'mid-market' rate) and the retail rate (rate applied to individuals, including a provider margin of 1–5%). Traditional banks often apply the highest margins. Services like Wise, Revolut or PayPal apply the interbank rate with more transparent fixed fees.
📐 Formula
📊 Conversion table
| Provider | Rate type | Typical margin | Fixed fees |
|---|---|---|---|
| Traditional bank | Retail | 2–4 % | Variable |
| Airport exchange office | Retail | 5–10 % | Often included |
| Wise (transfer) | Interbank | 0.35–1 % | Fixed per band |
| Revolut (within limit) | Interbank | 0 % | $0 |
| PayPal | Proprietary retail | 3–4 % | Included |
💡 Practical examples
Interbank EUR/USD rate = 1.08. Bank rate (3% margin) = 1.112. Bank: 500 / 1.112 = €449.6. Wise: 500 / 1.08 - €3 fee ≈ €460. Difference: €10.4 more with Wise.
Sale of €150. EUR/USD = 1.08. PayPal (3.5% margin): 150 × 1.08 × (1 - 0.035) ≈ $156.4. Wise: 150 × 1.08 - $2 ≈ $160. Difference: ~$3.6 per transaction.
EUR/USD = 1.08 means: 1 euro = 1.08 dollars. To buy euros with dollars: $1,000 / 1.08 = €925.9. To buy dollars with euros: €1,000 × 1.08 = $1,080.