Forward Rate Calculator:

Use the forward rate calculator to determine the forward rates of multiple currency pairs – USDINR, EURINR, GBPINR and JPYINR. Myforexeye’s forex calculator offers an extremely user friendly tool to calculate the forward rate for exports and imports for any maturity upto next one year. Compute the forward rate using Myforexeye forward premium calculator by entering the relevant details.Once all the details are entered, the calculator shows the following:

  1. Spot rate for the selected currency pair.
  2. Forward premium in absolute terms (paise per unit of foreign currency)
  3. Forward premium in annualized percentage
  4. Forward rate for the selected currency pair for the specified maturity
Such a foreign exchange calculation is an efficient tool for all importers and exporters to calculate the forward rates of multiple currency pairs across various maturities in quick time. Importers and Exporters can also check the forex rates while executing transactions. These real-times rates simplify the process of checking rates across many sources.

FAQs

What is a Forward Rate and a Forward Contract?

Forward rate is the price at which the two parties agree to buy/sell a particular currency at a pre-determined future date or period. A forward contract is a customized agreement between two parties to buy/sell a particular currency at a rate agreed today for a delivery at a pre-determined future date or period. An exporter/importer does a forward contract with the bank as counter-party.

What are the types of Forward Contracts?

Forward contracts are of two types:

  1. Fixed Date Forward: The maturity or the due date is a fixed date. For example: 15thOctober, 9thDecember, 31stMay.
  2. Window Forward: The maturity is a time period - a window of dates. The maximum time period for window forward is 30 days. For example: 1-15th February, 8-20thDecember, 5thMay – 4thJune, 1-30th January)

Why is Forward Rate important?

It allows the importer/exporter to protect itself from adverse currency movements by locking in a fixed exchange rate for a future date or period. Forward rates booked in forward contracts forward contracts eliminates the currency risk that arises out of the volatile in exchange rate movements.

How to calculate forward rates?

Just like spot rates are quoted and traded in the forex markets, forward premiums/discounts are also quoted and traded. Forward Rate = Spot Rate + Forward Premium Forward Rate = Spot Rate - Forward Discount Myforexeye forward rate calculator helps in calculating the forward premiums or forward discounts for various currency pairs.

What is the relationship between spot rate and forward rate?

Forward rates are derived from spot rates. Depending upon the differential of interest rates between two currencies of an exchange rate, one currency will be at a premium or a discount vis-à-vis the other currency.

What are the benefits of Myforexeye Forward Rate Calculator?

For USDINR, forward rate calculations are quite simple. For cross currency INR forward rates, such computations can become quite confusing, tricky and time consuming. Myforexeye forex calculator is an efficient tool to quickly calculate the forward rates for all the major cross currency INR pairs across various maturities. In addition to the market vectors of spot and forward premiums, the forward premium calculator also displays the annualized percentage of the forward premiums.

Forward Rate Calculator

Trade Date

Spot Date

Currency From

Currency To

Maturity From

Maturity To

Forward Rate

Spot Rate

Forward Premium Annualized %

Forward Premium

Forward Rate

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