Calcupedia

Forward Premium Calculator

Finance

Calculate the forward premium (or discount) on a currency pair from its spot and forward exchange rates, both as a raw percentage and annualized.

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01,000,000
01,000,000
days
1 day3,650 days

Annualized Forward Premium

0.8770

The premium expressed as an annual rate, for comparing contracts of different lengths

Forward Premium

0.2192

The raw percentage difference between the forward and spot rate

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Calculator Stats

Odeh Ahwal

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Odeh Ahwal
Reviewed and verifiedThis calculator was reviewed and verified by the Calcupedia due diligence team.

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Frequently Asked Questions

What does a negative result mean?

A negative value means the currency is trading at a forward discount rather than a premium, meaning the forward rate is below the current spot rate.

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