Currency Forward Calculator

Your details

The current mid-market exchange rate. For example, 1.0850 means 1 unit of base currency buys 1.0850 units of price currency.
Annualised risk-free rate (or LIBOR/SOFR/EURIBOR equivalent) for the base currency. For EUR/USD, the base is EUR.
% p.a.
Annualised risk-free rate for the price (quote) currency. For EUR/USD, the price currency is USD.
% p.a.
Number of calendar days until the forward contract matures.
days
Most USD and EUR money markets use a 360-day year; GBP, CAD, AUD and some others use 365.
The face value of the forward contract in base currency units. Used to compute the settlement value in price currency.
units
If you have a real bank quote, enter it here to see the deviation from the no-arbitrage implied rate and whether an arbitrage opportunity exists.
Currency
Forward Exchange RateForward premium
1.087

No-arbitrage forward rate implied by Covered Interest Rate Parity

Forward Points20.1pips
Forward Premium / Discount0.002%
Annualised Premium / Discount0.007%
Settlement Value (price currency)1,087,011.74
Forward Points (pips)20.1
Spot Rate1.087
Forward Points20.1

Premium / Discount: 0.002%

IRP-implied forward rate: 1.0870 (+20.1 pips vs spot)

  • The forward rate (1.0870) is above the spot rate (1.0850): the price currency trades at a forward premium of 0.185% (+20.1 pips) for 90 days, or 0.742% annualised.
  • The price currency has the higher interest rate (5.25% vs 4.50%), so CIRP requires it to trade at a forward premium to eliminate arbitrage.

Next stepCompare this fair-value forward rate with your bank or broker quote. A significant deviation may be negotiable or could indicate a pricing error. Always confirm day-count conventions and rate sources with your counterparty.

 = Powered by OnlyCalculators