Forward Premium Calculator – Investment Tools – Multi-Tools

Forward Premium Calculator

Calculate and analyze forward premiums in foreign exchange markets. Features comprehensive analysis including annualized rates, interest rate differentials, and currency pair analysis.

Currency Pair Parameters
Current spot exchange rate
Forward exchange rate
Interest Rates
Annual interest rate for base currency
Annual interest rate for quote currency
Time Period
Number of days until forward contract maturity

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Forward Premium Formula

Forward Premium/Discount:

Premium = ((F – S) / S) × 100

Annualized Premium:

Annualized = Premium × (365 / Days)

Where:

  • F = Forward Rate
  • S = Spot Rate
  • Days = Time Period
How to Use
  1. Select base and quote currencies
  2. Enter spot and forward rates
  3. Input interest rates for both currencies
  4. Specify time period in days
  5. Review premium analysis and recommendations

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