Spot and Forward Interest Rate Calculator
Derive the implied forward rate between two entered effective annual spot rates and maturities.
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
Convert spot rates to discount factors and equate compounded growth through the later maturity with growth through the earlier maturity followed by a forward interval.
(1+forward)^(t2−t1)=(1+s2)^t2/(1+s1)^t1
Worked example
One-year spot 4% and two-year spot 5% imply a one-year forward rate of 1.05²/1.04−1≈6.00961538%.
Assumptions and input details
Both rates are effective annual rates on a consistent currency/credit basis, with actual time represented by entered year fractions. Earlier time must be positive and less than later time. No interpolation of a curve, transaction costs or market quote is provided. Implied forward rates are no-arbitrage arithmetic under these assumptions, not forecasts. 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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