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

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 ($) 
  • SP is the current share price ($) 

How to Calculate Exchange Ratio?

The following example problems outline how to calculate Exchange Ratio.

Example Problem #1:

  1. First, determine the equity purchase price ($). 
    • The equity purchase price ($) is given as: 56.
  2. Next, determine the current share price ($). 
    • The current share price ($) is provided as: 70.
  3. 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 = ?