How to Convert Currency in Google Sheets?
When working with Google Sheets, you may encounter situations where part of the data is in a different currency, and you may need to convert it into a more familiar or local currency, depending on the context and location to be used.
Thankfully, Google Sheets provides effective and potent tools that allow you to perform various operations like calculations and data manipulations, including currency conversion.
Regarding Currency conversion, Google Sheets can fetch real-time exchange rates from the internet through in-built functions and third-party tools or add-ons that make it easy to convert one currency to another or even multiple others within your spreadsheet.
Whether you’re a student, a researcher, a business professional, or a data analyst, knowing how to convert currencies in Google Sheets will make your job much easier.
In this detailed guide, we will analyze all the methods available in Google Sheets to perform currency conversion. We will discuss each method’s pros and cons and provide step-by-step instructions on how to use them. So, let’s dive in.
How to Convert Currency in Google Sheets
There are various methods to convert currencies in Google Sheets.
These include approaches like using built-in functions, simple formulas, third-party add-ons, and tools that will allow you to convert currencies in a few steps.
Let’s get started with each one of these methods.
Copy the Example Google Sheet
Feel free to copy the accompanying Google Sheet containing the data we’ll use to illustrate the steps for currency conversion in this guide, so you can follow along.
If you already have your own sheet, feel free to replicate the steps/methods detailed below to convert any currency in Google Sheets.
Method 1: Using GOOGLEFINANCE Function to Convert Currency in Google Sheets
One of the most commonly used methods for currency conversion in Google Sheets is the GOOGLEFINANCE function. This function will allow you to directly retrieve current or historical financial information, including exchange rates, from the internet into your spreadsheets.
To use the GOOGLEFINANCE function for currency conversion, you are required to specify the source currency, target currency, and the amount you want to convert from one currency to the other. The syntax for applying the GOOGLEFINANCE function is as follows:
=GOOGLEFINANCE("CURRENCY:Currency_code1Currency_code2")*Source_AmountWhere:
=GOOGLEFINANCEis the function that gets information concerning current or historical monetary information from Google Finance.-
CURRENCYpart of the function will define the currency codes we will use by identifying them as Currency to the function. - Currency_code1 will be the currency code of the currency you want to convert.
- Currency_code2 will now be the code of the currency you want to convert into.
- The Asterisk (
*) sign is the multiplying operator in Google Sheets Source_Amountis the value of the currency you want to convert or the cell containing the amount to be converted.
Some of the most popular and widely used currency codes include USD for the US Dollar, CAD for the Canadian Dollar, GBP for the Great British Pound, EUR for the Euro, HKD for the Hong Kong Dollar, and JPY for the Japanese Yen, among others.
To convert currencies in Google Sheets using GOOGLEFINANCE, you can follow the step-by-step guide below:
Step 1: Open an existing or new Google Sheets document
Open the spreadsheet containing the data with the values you want to convert or open a new empty spreadsheet. Below is an example spreadsheet that we will use to convert currencies.
Step 2: Select an empty cell where the converted value will appear
Once you have opened your spreadsheet, highlight the cell where you wish your conversion to appear. Using our example, we will select cell D2.
Step 3: Enter this formula: =GOOGLEFINANCE("CURRENCY:USDEUR")*B2
In the selected cell, type in the GOOGLEFINANCE formula, replacing the Currency Codes 1 and 2 with the Codes of the currencies you want to convert from and to, respectively.
Following our example, we intend to convert the sales value in USD, representing US dollars, to EUR, which is Euros.
We will now insert the Codes, and our final formula will be the following:
=GOOGLEFINANCE("CURRENCY:USDEUR")*B2B2 is the cell containing the value we want to convert.
Step 4: Press Enter
Once you have inserted the function correctly, hit enter to reveal the converted value.
Method 2: Using Add-Ons to Convert Currency in Google Sheets
To convert currencies in Google Sheets, you can use add-ons specifically designed for this purpose. These add-ons provide real-time currency conversion rates and allow you to easily convert values between different currencies within your Google Sheets spreadsheet.
You can use different add-ons to convert currencies available in Google Sheets, and you can choose from a list depending on your preference or familiarity.
You must note that these add-ons provide real-time currency conversion rates, relying on external sources for these rates. Therefore, the accuracy and reliability of the conversion rates may vary depending on the basis used by the add-on.
Before making critical calculations or transactions, you are always advised to verify the rates with a trusted financial institution or reliable online currency converter. To use these Add-ons, follow the general steps below:
Step 1: Install the Currency Converter add-on
To install the Currency Converter add-on, open Google Sheets and Click on Extensions on the top menu Bar. On the list that will be presented, select ADD-ons, and another sub-menu will appear where you will choose Get add-ons.
A pop-up window will appear where you search for a Currency Converter add-on and Install it. Follow the illustration below;
Step 2: Configure the add-on
After installing the Currency Converter add-on, you need to configure it to work with your spreadsheet. To do this, go to extensions, add-ons, and select View document add-ons. Here, you will find the installed currency converter.
Once opened, you will configure the add-on to the specific requirements following the instructions given. Instructions may differ from one add-on to another but ultimately serve the same purpose.
Step 3: Convert currencies
Now that the add-on is configured, you can convert currencies to your spreadsheet. To do this, follow the add-on instructions to convert currencies within your spreadsheet. You can also automate the process of converting currencies using such add-ons.
Tips To Achieve Accurate Currency Conversions in Google Sheets
To ensure the user gets accurate and reliable results after converting currency in Google Sheets, you have to keep in mind the following tips:
- Check the Current Exchange Rates: The exchange rate in Google Sheets is not always up-to-date. One must check and ensure that the current exchange rate for the currencies you want to change is on a website like Oanda Currency Converter. If the rates vary, you will have to update the exchange rate in your Google Sheet to the most recent figures.
- Use a Specific Currency Code: When inserting a currency amount in Google Sheets, make sure to include the 3-letter ISO 4217 for the desired currency code. For instance, insert 250 USD instead of 250 US dollars or 10 EUR instead of 10 Euros. This will help you ensure Google Sheets converts accurately and correctly.
- Make Use of the GOOGLEFINANCE Function: The GoogleFinance function executes currency exchange rates directly from Google Finance, so you’ll get the current market rate. The syntax is:
=GoogleFinance(“CURRENCY:BASE_CURRENCY”, “exchange_rate”, “CURRENCY_CODE”, “BASE_CURRENCY_CODE”)
For instance, to convert 160 USD to EUR, insert:
=GoogleFinance(“USD:EUR”, “exchange_rate”, “USD”, “EUR”)*160
- Ensure You Update Exchange Rates Frequently: Currency markets are regularly changing their rates from time to time. To acquire the most accurate conversions, one must update their Google Sheet exchange rates to the fullest extent. Once again, use the GoogleFinance function to execute the latest rates spontaneously.
- Cross-check the Numbers Converted: Once one has finished their desired currency conversion in Google Sheets, check once again that the resulting figure seems accurate and reasonable. Check and reference it with the latest exchange rate from a well-known website. If anything seems off, re-examine your exchange rate data and the formula used.
- Make Use of Multiplication and Division During Conversion: One can use simple multiplication and division operations. For instance, if one has a particular amount in one currency and wants to change it to another currency. Multiply the amount by the exchange rate to change from the base currency to the quote currency. To change it from the quote currency to the base currency, divide the amount by the exchange rate.
- Make Use of the Transaction Charges: Remember that currency conversion rates in Google Sheets do not include transaction fees enforced by financial institutions or banks. If you are conducting and dealing with large amounts of financial exchanges, it is wise to use these extra costs to get a more accurate version of the total conversion in Google Sheets.
Using the above beneficial tips, you will convert currencies in Google Sheets more precisely and confidently.
Why Convert Currencies in Google Sheets
Converting currencies is a common and crucial task when it comes to working with international transactions in businesses or even just individual-to-individual transactions. With these transactions, you encounter several reasons to convert currencies, such as:
1. Finance Analysis: Currency conversion is essential for financial analysis, especially for multinational companies, businesses, or individuals in many countries. In order to get the exact financial position in the investments in different countries, you will need to convert into a standard or familiar currency, making it easier to compare and analyze performance.
2. Report Making: To make a harmonized report from information across different countries, you will certainly need to convert the currency values from the reports from each country to one common suitable currency and make a final report with an exact representation of the relevant currency depending on where the report will be used or is being made.
3. Budgeting and Expense Monitoring: For Businesses and individuals managing Budgets and tracking expenditures across different countries, converting expenses into a common currency makes it simple to track and monitor spending patterns, observe trends, and, ultimately, make informed financial decisions.
4. International E-commerce: The Internet has taken over almost every sector, and many businesses operate through E-commerce, allowing them to reach global markets and sell products and services to customers worldwide. Currency conversion is necessary to display accurate prices in local currencies on their platform, whether websites or applications.
To achieve this, you will require a way to go around it, and with a robust data management tool like Google Sheets, this can be done by utilizing in-built Functions that will allow you to convert currencies within your spreadsheet easily.
Conclusion
There you have it: converting currencies in Google Sheets can be easily accomplished by utilizing the built-in functions and third-party add-ons available in Google Sheets. You can automate converting currencies and keep your data current by following a few simple steps and tips. This feature benefits individuals and businesses dealing with international transactions or managing finances across countries.
Overall, Google Sheets provides a convenient and straightforward way to perform currency conversions within a spreadsheet. By utilizing the GOOGLEFINANCE function and simple formulas, users can easily keep track of exchange rates and calculate converted values. However, it’s important to remember that the rates provided by Google Sheets are for informational purposes only and may not be real-time or suitable for financial transactions.
Furthermore, using add-ons for currency conversion in Google Sheets offers several advantages. The automation these tools provide saves time and ensures accuracy by automatically fetching and updating exchange rates. The flexibility of add-ons allows for easy conversion between various currencies, including advanced features like historical data.
Lastly, using these add-ons enhances collaboration and productivity by enabling multiple users to access and utilize them simultaneously. In the long run, the choice of method varies depending on the required requirements and preferences of the user.
FAQs
What Is the Difference Between the Custom Exchange Rate and a Dynamic Exchange Rate in Google Sheets?
In Google Sheets, users use a custom exchange rate to characterize their own exchange rates for specific currency pairs. On the contrary, a dynamic exchange rate in Google Sheets automatically updates the exchange rate removed from a foreign data source. This is typically done using add-ons or the `GOOGLEFINANCE` function that gives up-to-date currency data.
What Is the Difference Between a Base Currency and a Target Currency in Google Sheets?
The two terms are commonly used in Google Sheets to sum up the exchange rates during conversions. Base currency is the currency you want to be converted, whereas target currency, or quote currency, is the currency into which one wants to change their base currency in the exchange rates.