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Currency Forward Quote with Simple ACT/360 Rates

Calculate a theoretical forward exchange quote from a spot quote and two simple annualized money-market rates on an ACT/360 basis.

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Calculator inputs

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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

A spot quote of 1.05 price-currency units per base unit, annual price-currency rate 10 percent, base rate 5 percent and 360 days give a theoretical forward quote of 1.10.

Forward = spot × (1 + price-currency annual rate × days/360)/(1 + base-currency annual rate × days/360)

Worked example

Enter these known values and leave the other values blank.

Accrual days supplied for the contract
360 days
Annual simple rate of price currency
10 %
Annual simple rate of base currency
5 %
Spot quote in price currency per base unit
1.05
Price-currency rate over the contract
10 %
Base-currency rate over the contract
5 %
Theoretical forward quote on the same basis
1.1

Assumptions and limitations

  • Both annualized rates use simple ACT/360 accrual. Enter the applicable actual day count; the calculator does not derive dates or apply business-day adjustments.
  • Spot and forward quotes use units of the price currency per one base-currency unit. Swapping the quote direction also swaps the currency rates.
  • Each contract-period accumulation factor must be positive. Negative annual rates are permitted when they leave positive factors over the entered term. Zero days returns the spot quote.
  • This is a theoretical covered-interest-parity relationship, not a live quote or a forecast of future spot. Credit, liquidity, transaction costs and cross-currency basis can create market differences.

Common questions

What are the price and base currencies?

For a quote of USD per EUR, USD is the price currency and EUR is the base currency. Keep the quote direction and interest-rate inputs consistent.

Does ACT/360 mean a 360-day calendar year?

No. It divides the supplied actual accrual days by 360 to calculate simple interest.

References

Bookify requires positive exchange quotes and positive accumulation factors for both currencies, while allowing negative interest rates within that domain.

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