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Forward Premium Calculator
Determine whether a currency is trading at a forward premium or discount, and by how much on an annualized basis.
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What is a forward premium?
In foreign exchange markets, a currency trades at a forward premium when its forward rate is higher than its current spot rate, and at a forward discount when the forward rate is lower. This reflects interest rate differences between the two currencies.
The formula
Annualized Forward Premium (%) = ((Forward Rate − Spot Rate) / Spot Rate) × (360 / Days to Maturity) × 100. A positive result means the currency is at a forward premium; a negative result means a forward discount.
This calculator is for general education about FX markets and is not trading or investment advice.
Last reviewed August 2026