FX Forward Hedge Scenario Calculator
Compare a foreign-currency payable or receivable with and without an entered forward rate, plus a rate-parity benchmark.
YOUR CALCULATION
Result
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Calculation steps
Work through one step at a time or reveal the complete calculation. The steps use your current inputs.
How to calculate
Calculate a covered-rate-parity forward benchmark from compatible effective annual rates. Compare entered spot settlement with the chosen forward quote for the foreign exposure.
Theoretical forward=spot×[(1+domestic rate)/(1+foreign rate)]^years
Worked example
Spot 1.1 domestic/foreign with domestic rate 5%, foreign rate 3% and one year gives theoretical forward about 1.12135922. A 10000 foreign payable costs that rate×10000, before the entered fee.
Assumptions and input details
Rates and future spot are assumptions; blank forward quote means a theoretical scenario, not an executable quote. Compatible currencies, maturities and interest conventions are assumed. Fee is paid at settlement in domestic currency. No collateral, counterparty default, interim margin cash flows, taxes or transaction is modeled. No live market data or national tax rules are inferred. Enter consistent amounts in one currency unless explicitly stated otherwise.
Using this calculator
Can I enter my own problem?
Yes. Replace the example values with your own inputs. The result, calculation steps, tables and applicable diagrams update from those inputs. Blank or invalid values clear the result; example values are never silently substituted for missing inputs.
Are the results exact?
Results use floating-point arithmetic and displayed rounding. Read the formula, assumptions and any stated data precision before interpreting the result.
Is my input uploaded?
The calculation runs in your browser. No account, file upload or external AI service is required. Inputs are not saved between page reloads.
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