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Foreign Exchange Gain Or Loss Calculator

Work out foreign exchange gain or loss instantly with clear inputs, formula shown and shareable results.

About Foreign Exchange Gain Or Loss Calculator

An unhedged foreign currency invoice creates exposure between booking and settlement. A depreciating home currency helps an exporter with a receivable and hurts an importer with a payable, by exactly the same amount.

Formula

Exchange difference

Difference = amount × (settlement rate - invoice rate), signed by whether the position is receivable or payable

Worked example

With the default values below, Foreign Exchange Gain Or Loss Calculator returns Exchange Gain Or Loss of $180,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Invoice Amount In Foreign Currencyminimum 0
120,000
Rate When Invoicedaccepts 0–100,000
82.6
Rate At Settlementaccepts 0–100,000
84.1
Your Positionone of Receivable (exporter), Payable (importer)
Receivable (exporter)

Results

Exchange Gain Or Loss
$180,000.00
Value When Booked
$9,912,000.00
Value At Settlement
$10,092,000.00
Exchange Rate Movement
1.8160%

Step by step

  1. 1Values used
  2. 2Exchange difference
  3. 3Exchange Gain Or Loss= 180,000.00
  4. 4Value When Booked= 9,912,000.00
  5. 5Value At Settlement= 10,092,000.00
  6. 6Exchange Rate Movement= 1.8160

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.

Frequently Asked Questions

Where does this appear in the accounts?

As an exchange gain or loss in the profit and loss account, separate from operating margin.

How is the exposure removed?

By booking a forward contract at the invoice date, which fixes the settlement rate and eliminates the difference.

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