How to use this calculator
- Enter spot domestic units per foreign unit, domestic simple annual rate (%), foreign simple annual rate (%), year fraction.
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Assumptions and limitations
Simple rates, matching currencies and maturity; no basis, collateral, funding restrictions or transaction costs.
Worked example
With spot domestic units per foreign unit = 1.2, domestic simple annual rate (%) = 5, foreign simple annual rate (%) = 3, year fraction = 1, parity forward quote is approximately 1.223301.
What the result means
Estimate a forward exchange quote under frictionless covered interest parity.
Common questions
How should I interpret parity forward quote?
Estimate a forward exchange quote under frictionless covered interest parity.
What should I check before using this result?
Simple rates, matching currencies and maturity; no basis, collateral, funding restrictions or transaction costs.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.