Forward Rate Calculator

Derive the market's implied future interest rate from two current spot rates. The forward rate represents the interest rate expected to prevail in the future, as implied by the current yield curve.

Spot Rate 1 (Shorter Term)

Spot Rate 2 (Longer Term)

How to Use

  1. 1

    Step 1

    Enter Spot Rate 1 and its corresponding period (e.g., the 1-year spot rate).

  2. 2

    Step 2

    Enter Spot Rate 2 and its corresponding longer period (e.g., the 2-year spot rate).

  3. 3

    Step 3

    Click Calculate to get the implied forward rate for the period between the two.

Frequently Asked Questions

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