How to Use the FX Gain or Loss Calculator
When investing internationally, exchange rate movements can significantly boost or cut your returns — completely independent of how the underlying asset performs. This calculator isolates the currency effect: enter your purchase exchange rate, current rate, and investment amount to see how much FX movement has helped or hurt your position.
Calculation Method
Foreign units purchased = Home currency investment ÷ Purchase rate. Current home currency value = Foreign units × Current rate. FX gain/loss = Current value − Original investment. Return rate = (Current value ÷ Investment − 1) × 100.
Total Return vs. FX Return
This calculator shows only the currency effect. Your total return on a foreign investment is the combination of the asset's price change and the FX movement. For example, if a European stock gained 10% in euros and the euro strengthened 5% against the dollar, your total USD return is approximately 15.5%.
Managing Currency Risk
Currency-hedged ETFs (usually labeled with "H" like EWJ-H) allow you to hold international assets without currency exposure. Unhedged positions can add or subtract significantly from returns. Most long-term investors accept currency risk as part of global diversification.
Frequently Asked Questions
Yes. Enter the exchange rate in your home currency per unit of foreign currency, regardless of which currencies are involved. Just be consistent: if you enter purchase rate as USD per Euro, enter the current rate the same way.
For accuracy, use the actual rate you received when exchanging — not the mid-market rate. Banks and brokers typically add a spread of 0.5–2%, so the effective rate is less favorable than published rates.