Currency hedge calculator
Paying a supplier abroad later? See what a foreign currency bill costs if you fix all, none or part of it today, and how each choice holds up if the rate moves. Free, no sign-up, nothing leaves your browser.
Enter the fixed rate a provider quotes you; the starting numbers are only an example. A higher rate on the day means USD got dearer. This compares outcomes and isn't advice.
| Rate on the day | Your mix | Fix none |
|---|---|---|
| 0.7110 (-10%) | £7,505.00 | £7,110.00 |
| 0.7505 (-5%) | £7,702.50 | £7,505.00 |
| 0.7900 (0%) | £7,900.00 | £7,900.00 |
| 0.8295 (+5%) | £8,097.50 | £8,295.00 |
| 0.8690 (+10%) | £8,295.00 | £8,690.00 |
Why hedge at all
A business that buys abroad can see its profit shrink simply because a currency moved between agreeing a price and paying. A UK shop that agrees to pay a US supplier $10,000 in three months pays more in pounds if the pound falls against the dollar in that time, even though nothing else changed.
Fixing part, not all
A forward contract fixes an exchange rate today for a payment later. Hedging has costs and can mean missing out when rates move your way, so some businesses fix only part of a bill and leave the rest at whatever the rate is on the day. It tends to matter most when foreign payments are large compared with profit.
Launch your own multi-currency money app
SendPay platforms include GBP, EUR and USD accounts and currency exchange under your own brand, powered by licensed partners, so balances can be held in the currency you pay in. SendPay doesn't offer forward contracts or options.