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Economics

Real exchange rate Calculator

Economics

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Real exchange rate

Equation and meaning

\[\epsilon = \frac{e \cdot P}{P_{star}}\]

Real exchange rate where ε is the real exchange rate, e is the nominal exchange rate, P is domestic price (price of a good in US dollars), and P ∗ is the foreign price (price of a good in foreign currency)

Variables in this formula

e — E
Enter this value unless it is the selected unknown.
epsilon — Epsilon
Enter this value unless it is the selected unknown.
P — Power
Power SI unit: W
P_star — P Star
Enter this value unless it is the selected unknown.

How to use this calculator

  1. Leave one value emptyThe empty field is automatically treated as the unknown.
  2. Enter known values and unitsChoose N, kgf, dyn, SI or another compatible unit when available.
  3. Review the automatic answerThe result appears immediately and is substituted back into the formula to check the residual.
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