# Currency Appreciation and Depreciation Calculator

## Calculator Use

- Select your
**Base Currency**that you want to quote against. These are set at 1 base currency unit. - Select your
**Quote Currency**. - Enter your starting quote (exchange rate #1).
- Enter your ending quote (exchange rate #2).

This calculator will calculate the percentage change of the **Quote Currency** relative to the **Base Currency** and the percentage change of the **Base Currency** relative to the **Quote Currency**.

## Calculating Currency Appreciation or Depreciation

Given 2 exchange rates in terms of a Base Currency and a Quote Currency we can calculate appreciation and depreciation between them using the percentage change calculation. Letting V_{1} be the starting rate and V_{2} the final rate.

The percentage change of the Quote Currency relative to the Base Currency is

\[ Percent~Change = \frac{(V_1-V_2)}{|V_2|}\times100 \]The percentage change of the Base Currency relative to the Quote Currency is

\[ Percent~Change = \frac{(V_2-V_1)}{|V_1|}\times100 \]A positive change is appreciation and a negative change is depreciation.

**Example Calculation:**

For example, calculating between GBP and INR; if a year ago 1 GBP = 42.553 INR and today 1 GBP = 54.054 INR we have V_{1} = 42.553 and V_{2} = 54.054.

The percentage change of INR relative to GBP is ((V_{1} - V_{2})/V_{2}) * 100 = ((42.553 - 54.054)/54.054) * 100 = -21.277%; Relative to GBP, INR Depreciated 21.277%.

The percentage change of GBP relative to INR is ((V_{2} - V_{1})/V_{1}) * 100 = ((54.054 - 42.553)/42.553) * 100 = 27.027%; Relative to INR, GBP Appreciated 27.027%.

**Cite this content, page or calculator as:**

Furey, Edward "Currency Appreciation and Depreciation Calculator"; from *http://www.calculatorsoup.com* - Online Calculator Resource.