Finance

Currency Forward Rate Calculator

Calculate forward exchange rates based on covered interest rate parity.

Spot Exchange Rate

Current rate (domestic/foreign)

Forward Period (months)

Domestic Interest Rate (%/yr)

Foreign Interest Rate (%/yr)

Notional Amount ($)

Covered Interest Rate Parity:
F = S × [(1 + r_d × t) / (1 + r_f × t)]
Forward Points = F − S
Where t = months/12

Understanding Forward Rates

A forward rate is the agreed-upon exchange rate for a currency transaction that will occur at a specified future date. It's determined by the spot rate and the interest rate differential between the two currencies.