How to Use the FX Risk Modeller
Step-by-step guide to modelling your currency exposure and seeing how exchange rate movements affect your margins.
Key Takeaways
- The FX Risk Modeller is free and requires no login.
- Enter your purchase currency, selling currency, and product cost to see margin impact under different rate scenarios.
- Use the three depreciation scenarios to stress-test your margins against realistic rate movements.
Accessing the tool
The FX Risk Modeller is available at askbiz.co/free-tools/fx-risk-modeller — no account required. It works in any browser on desktop or mobile.
Step 1: Enter your currency pair
Select your purchase currency (the currency you pay your supplier in) and your selling currency (the currency you sell in, typically GBP for UK businesses). The tool loads the current mid-market rate for that pair automatically.
Step 2: Enter your product details
Add one or more products. For each, enter: product name (optional, for your reference), supplier cost in your purchase currency, selling price in your selling currency, and units sold per month. The tool calculates your current gross margin per product and the portfolio summary.
Step 3: Run the scenarios
The tool automatically calculates the impact on your margins under three depreciation scenarios: mild (-5%), moderate (-10%), and severe (-20%) depreciation of your selling currency against your purchase currency. The portfolio risk table shows the margin impact per product and the total P&L impact — helping you identify which products are most vulnerable and where margin protection (hedging or price adjustment) is most important.