Free · Macroeconomics calculators 💵

Carry Spread and Exchange Sensitivity Scenario

Evaluate the captured spread-growth heuristic with an entered exchange-rate change and 360-day year.

  • Formula & worked example
  • Private in your browser
  • No signup
Go to tool

Calculator inputs

Loading calculator…

How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Where results are editable, change one to solve backwards. Lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

With unchanged exchange rate, a 5% lending rate, 2% borrowing rate and 360 days, the heuristic return is 3%, giving profit of 30 on 1000.

Return = [1 + (lend − borrow)(1 + exchange change)]^(days/360) − 1.

Worked example

Enter these known values and leave the other values blank.

Initial exchange rate
2
Settle exchange rate
2
Days until trade settles
360 days
Lending rate
5 %
Borrowing rate
2 %
Amount invested
1000 USD
Spot rate differential
0 %
Investment return
3 %
Carry trade profit
30 USD

Assumptions and limitations

  • This is the retained spread-growth heuristic, not a complete funded FX trade model. With equal borrowing and lending rates it reports zero even when exchange rates change; principal FX exposure is omitted.
  • Rates are scenario inputs; no current exchange rate or carry-trade profitability is implied. The year is exactly 360 days.
  • Enter all monetary amounts in a single currency. Retained currency conversion factors are a captured static snapshot, not live exchange rates.
  • Clear a known field before solving for it. Locks retain chosen inputs; inconsistent locked values need correction. Reset restores the captured defaults.

Common questions

What does the worked example show?

With unchanged exchange rate, a 5% lending rate, 2% borrowing rate and 360 days, the heuristic return is 3%, giving profit of 30 on 1000.

What assumptions limit this calculation?

This is the retained spread-growth heuristic, not a complete funded FX trade model. With equal borrowing and lending rates it reports zero even when exchange rates change; principal FX exposure is omitted.

References

Use the documented finite scenario domain. iniEx must be positive. endEx must be positive. days must be positive. The effective growth base must be positive. amt invest cannot be negative.

Explore macroeconomics calculators 💵 or browse all finance calculators.