Whether you are a tourist visiting the Burj Khalifa or an expat living in Dubai sending money home, understanding how the United Arab Emirates Dirham (AED) exchange rate works is crucial for your finances. This calculator helps you determine exactly how much you will receive after exchange rates and service fees are applied.
The USD to AED Peg
The cornerstone of the UAE's monetary policy is its peg to the US Dollar. Since 1997, the AED has been pegged at a rate of approximately 1 USD = 3.6725 AED. This provides stability for the economy and predictability for investors.
Expert Tip: While the official peg is 3.6725, exchange houses and banks will buy USD from you at a lower rate (typically 3.65 – 3.66) and sell USD to you at a higher rate (3.68 – 3.69). This difference is the "spread."
How to Use This Calculator
Our tool is designed to handle the two most common transactions in Dubai:
Buying AED (Foreign -> AED): Use this if you have foreign cash (like Dollars, Euros, or Pounds) and want to convert it into Dirhams for spending in Dubai. Note that service fees (usually VAT + commission) are often deducted from the final AED amount.
Sending Money (AED -> Foreign): Use this mode (Remittance) if you earn in Dirhams and are sending money to India, the Philippines, Pakistan, the UK, etc. The calculator will deduct the AED service fee from your input amount before converting it at your specified rate.
Where to Exchange Money in Dubai
Dubai offers a plethora of options for currency exchange, often with better rates than you might find in Europe or the US.
1. Exchange Houses
Popular chains like Al Ansari Exchange, UAE Exchange, and Lulu Exchange are found in almost every mall. They generally offer better rates than banks for cash transactions. Always ask if they have a "better rate" for large amounts.
2. Banks
Banks are convenient for direct transfers but often charge higher service fees and offer slightly less competitive rates for cash exchange compared to specialized exchange houses.
3. Airports
While convenient, exchanging money at Dubai International Airport (DXB) often incurs the highest spreads. It is advisable to only exchange a small amount for immediate taxi fare and exchange the rest in the city.
Understanding Hidden Fees
When calculating your exchange, pay attention to:
The Front-End Fee: A fixed charge (e.g., 15 AED or 25 AED) per transaction.
The Spread: The difference between the mid-market rate and the rate the provider offers you.
VAT: In the UAE, a 5% Value Added Tax is applied to financial services fees.
Always compare the Net Amount Received rather than just the exchange rate to find the best deal.
// Initialize labels on load
window.onload = function() {
updateLabels();
};
function updateLabels() {
var radios = document.getElementsByName('dxb_type');
var selectedType = 'buy_aed';
for (var i = 0; i < radios.length; i++) {
if (radios[i].checked) {
selectedType = radios[i].value;
break;
}
}
var amountLabel = document.getElementById('amountLabel');
var rateLabel = document.getElementById('rateLabel');
var rateHelp = document.getElementById('rateHelp');
if (selectedType === 'buy_aed') {
// Foreign to AED
amountLabel.innerText = "Amount to Exchange (Foreign Currency)";
rateLabel.innerText = "Exchange Rate (How many AED for 1 unit?)";
rateHelp.innerText = "Example: If converting USD, rate is ~3.67";
} else {
// AED to Foreign (Remittance)
amountLabel.innerText = "Amount to Send (AED)";
rateLabel.innerText = "Exchange Rate (Target Currency per 1 AED)";
rateHelp.innerText = "Example: If sending to India, rate is ~22.7 INR";
}
// Hide results when switching modes to avoid confusion
document.getElementById('dxb_results').style.display = 'none';
}
function calculateExchange() {
// 1. Get Inputs
var amount = parseFloat(document.getElementById('dxb_amount').value);
var rate = parseFloat(document.getElementById('dxb_rate').value);
var fee = parseFloat(document.getElementById('dxb_fee').value);
// 2. Validate
if (isNaN(amount) || amount <= 0) {
alert("Please enter a valid amount to exchange.");
return;
}
if (isNaN(rate) || rate <= 0) {
alert("Please enter a valid exchange rate.");
return;
}
if (isNaN(fee)) {
fee = 0;
}
// 3. Determine Logic based on selection
var radios = document.getElementsByName('dxb_type');
var selectedType = 'buy_aed';
for (var i = 0; i = amount) {
alert("The service fee cannot be higher than the amount you are sending.");
return;
}
var netAED = amount – fee;
grossResult = amount * rate; // Theoretical gross without fee
finalResult = netAED * rate; // Actual conversion
// Effective Rate: Total Received / Total AED Cost
effectiveRate = finalResult / amount;
currencySuffix = " (Target Currency)";
displayGross.innerText = amount.toFixed(2) + " AED (Source)";
displayFee.innerText = "-" + fee.toFixed(2) + " AED";
}
// Update UI
displayEffRate.innerText = effectiveRate.toFixed(4);
displayFinal.innerText = finalResult.toFixed(2) + currencySuffix;
resultsBox.style.display = 'block';
}