How do you calculate break even exchange rate?

Answer 1

To calculate the break-even exchange rate, you need to determine the costs and revenues associated with a currency transaction. This involves identifying the cost of production in one currency and the expected revenue in another currency. The break-even exchange rate is then calculated by dividing the total costs by the total revenues, ensuring that they are expressed in the same currency. This rate indicates the point at which there is neither profit nor loss from the exchange.