Enter the equity purchase price ($) and the current share price ($) into the Exchange Ratio Calculator. The calculator will evaluate and display the Exchange Ratio.

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## Exchange Ratio Formula

The following formula is used to calculate the Exchange Ratio.

EXR = EP / SP

- Where EXR is the Exchange Ratio ( )
- EP is the equity purchase price ($)
- SP is the current share price ($)

To calculate an exchange ratio, divide the equity purchase price by the current share price.

## How to Calculate Exchange Ratio?

The following example problems outline how to calculate Exchange Ratio.

Example Problem #1:

- First, determine the equity purchase price ($).
- The equity purchase price ($) is given as: 56.

- Next, determine the current share price ($).
- The current share price ($) is provided as: 70.

- Finally, calculate the Exchange Ratio using the equation above:

EXR = EP / SP

The values given above are inserted into the equation below and the solution is calculated:

EXR = 56 / 70 = .80

Example Problem #2:** **

For this problem, the variables required are provided below:

equity purchase price ($) = 70

current share price ($) = 90

Test your knowledge using the equation and check your answer with the calculator above.

EXR = EP / SP** = ?**