Convert the price to your home currency, then compare it with what you would pay for the same item at home. A difference of a few percent is noise. A large one is worth a question. Before you go, list five items whose home price you know well, and use them as anchors. Remember that tax refunds, quality and rarity change the meaning of "overpriced". Here & Home does the conversion in about three seconds so you can focus on the comparison.
Why the home price is the right yardstick
You have a lifetime of price instincts in your own currency. You know what a good shirt, a box of tea or a pair of shoes should cost. Those instincts are the best tool you have for judging a deal abroad, but they only work in your own currency. The foreign number has to be translated first, and then it can be compared.
Convert, compare, then decide
- Convert the tag price into your home currency. Use the exchange rate you will actually get, not a hopeful one.
- Compare it with the price of the same or a similar item at home.
- Work out the gap as a percentage.
- Decide. Is the difference explained by something real: handmade, local, rare, tax refundable? If not, ask for a better price or move on.
Worked examples
These use illustrative figures. A rate of 0.61 rupee per yen is applied, and the home prices are what a traveller from India might expect to pay for similar things.
| Item | Tag (yen) | Converted | Home price | Difference |
|---|---|---|---|---|
| Box of green tea | 1,200 | 733 | 600 | +22% |
| Cotton shirt | 5,800 | 3,541 | 2,500 | +42% |
| Snack gift box | 2,480 | 1,514 | 1,800 | −16% |
| Leather wallet | 12,000 | 7,326 | 6,000 | +22% |
For the shirt: 5,800 yen at 0.61 is about 3,541 rupees. Compared with 2,500 at home, it is 1,041 higher, which is 1,041 ÷ 2,500, or about 42% more. That is a gap worth questioning. The snack box, by contrast, converts to 1,514 rupees against 1,800 at home, which is 16% less, so it looks like a good buy.
A gap alone does not make a verdict, and it works in both directions. A moderate premium for something you cannot buy at home can be a fair price. A large gap on something that is sold in every airport is a signal to look around.
Build your anchor list before you go
You cannot compare against a price you do not remember. Before the trip, write down five items you could plausibly buy abroad, and note what you would pay at home:
- A mid-range shirt or T-shirt.
- A standard souvenir, such as a magnet, a mug or a box of tea.
- A restaurant main course and a coffee.
- A pair of everyday shoes or a bag.
- A bottle of water and a short taxi ride.
Keep the list in your notes. After a day or two you will find you have a feel for the local prices as well.
When a higher price is fine
- Tax refunds. Some countries refund sales tax to visitors on larger purchases. The price may drop after the refund, but there are rules, forms and sometimes fees, so check them before you count on it.
- Handmade or local. Craft, food and clothing made locally may cost more than a factory copy, and be worth it.
- Rare or unavailable at home. A comparison is impossible when there is nothing to compare against.
- Quality and size. Make sure you are comparing like with like.
- Customs limits. Check what you may bring home, and any duty you may have to pay on arrival.
Different countries, different rates
If your trip crosses borders, the rate you memorised for the first country does not apply to the second. A price that was a bargain in one place can be average in another, and your mental conversion can drift. Convert each price with the right currency, and keep an eye on the zeros. Read more in multi-country trip expenses and converting in your head.
In Here & Home
The converter gives you the home figure in about three seconds, which leaves your attention for the part that matters, the comparison. Set a daily budget to see each purchase against what you planned to spend that day, and save the ones you buy so the total is never a surprise. If you are shopping with someone who keeps asking, the guide to answering "how much is that in our currency?" has a few tips.
Rates in the app are indicative and not a bank quote. What your card actually charges depends on its fees, so read card fees and DCC explained before a large purchase.
Questions people ask
How can I tell if something is overpriced abroad?
Convert the price to your home currency and compare it with what you would pay at home for the same item. A large gap is worth a question.
What gap counts as overpriced?
There is no fixed number. A few percent is noise. Forty percent on a common item is worth questioning. Handmade and rare items can fairly cost more.
What is an anchor list?
Five items whose home price you know well. Compare foreign prices with them to build a feel for local prices.
Do tax refunds change the comparison?
They can, but there are rules and sometimes fees. Check them before you rely on a refund.
Should I bargain?
Where it is the custom, yes. Know the home-currency price first and you will know how far to go.
Is the converted price exactly what I will pay?
No. Card fees and your bank's rate change the final amount. Here & Home shows indicative rates and a card fee preview.
Keep reading
Convert, compare, decide
Here & Home is free on Google Play. Know what a price means at home before you pay.
For reference. Steps and screens described here are as they appear in Here & Home, and menu names can differ between versions of Android and the app. Exchange rates and prices in examples are illustrative, and rates in Here & Home are indicative, updated periodically and not financial quotes. Emergency numbers, phrases, country facts and survival tips are general information given on a best-effort basis: check them before you travel, and do not rely on any app alone in a life-threatening emergency. Here & Home is a field companion, not a financial or emergency service. Trademarks are those of their owners and are used only to describe what the app works with.