How to compare living costs in different currencies

Keep the original amount

Record each city’s expenses in its local currency first. A converted amount is a second view of the same cost, not another expense. Use a single comparison currency and a consistent rate date across categories so differences are not caused by mixed conversion dates.

Check the direction of the rate

If a rate states 1 unit of currency A equals r units of B, multiply an A amount by r to get B. To go from B to A, divide by r. With euro-based reference rates, an A-to-B cross-rate is the B-per-euro rate divided by the A-per-euro rate.

For example only, if 1 EUR equals 2 units of A and 4 units of B, then 100 A equals 200 B. These invented units illustrate arithmetic; they are not current exchange rates.

A reference rate is not your bank’s quote

The ECB publishes reference rates for information, not transaction pricing. Actual conversion can include a spread and fees. Check the payment provider’s quote before moving money. If Lifovra lacks a supported rate for a currency pair, retain the local amount rather than filling in an old or guessed conversion.

Sources and further reading

• European Central Bank — reference exchange rates
• Lifovra — How it works