Break-Even Exchange Rate Calculator

Break-Even Exchange Rate Calculator

Thinking about buying something while traveling instead of at home? This calculator finds the exact exchange rate at which the foreign price and the domestic price work out to be identical - anything more favorable than that rate makes the foreign purchase the better deal.

Break-Even Rate = Domestic Cost Equivalent / Foreign Price

Example

An item costs $120 domestically (including tax and shipping) and 100 units in the foreign currency abroad.

Break-even rate = 120 / 100 = 1.2

If the actual exchange rate available to you is better than 1.2 (i.e., you get more than 1.2 domestic-currency-equivalent per foreign unit... or conversely a more favorable conversion), buying abroad saves money; if worse, buying at home is cheaper.

Practical Tip

Remember to include all costs on both sides of the comparison - the domestic price should include local sales tax, while the foreign price comparison should account for any card foreign-transaction fees, cash exchange commissions, or import duties you'd owe bringing the item home, since these often swing the real break-even point more than the headline exchange rate itself.