Carry Trade Calculator

Your details

The rate at which you open the trade (e.g. 1.0800 for EUR/USD). Enter the price of one unit of the base currency in terms of the quote currency.
The rate at which you close (or expect to close) the trade. Leave the same as the initial rate to isolate pure carry income.
Annual interest rate earned on the currency you are buying (long leg). Use the central bank policy rate or an overnight swap rate.
%
Annual interest rate paid on the currency you are selling (short leg). This is the funding cost of the trade.
%
Your equity in the trade (not the full notional). If you are using leverage, this is your margin deposit.
Multiplier that determines the full notional exposure. A leverage of 10x on $10,000 controls a $100,000 position. Use 1 for no leverage.
x
How many calendar days you plan to hold (or have held) the position. The carry calculation uses a 360-day year convention common in forex markets.
days
Long: you buy the higher-yield base currency and fund it by selling the lower-yield quote currency. Short: the roles reverse, and so does the carry sign.
Currency
Carry trade profitPositive carry
$2,216.18

Total profit from interest-rate differential over the holding period

Spot P&L$1,851.85
Total P&L$4,068.04
Investment return0.022%
Annualised return0.44%
Daily carry$12.3121
Spot rate differential0.019%
Notional position size$100,000.00
Carry profit$2,216.18
Spot P&L$1,851.85
Total P&L$4,068.04

Positive carry of 2216.18 over 180 days

  • Your 180-day carry earns 2216.18 in account currency, annualised to 44.32% of capital.
  • The base currency appreciated 1.85% over the period, boosting your carry income.
  • The 4.40% interest-rate differential is your structural edge. The higher the differential and the longer you hold, the more carry accumulates.

Next stepMonitor central bank policy announcements: a rate cut in the high-yield currency or a rate hike in the funding currency can rapidly erode this differential.

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