How to use this calculator
- Enter spot quote, forward quote, days to maturity.
- 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
Premium=(forward/spot−1)×365/days.
Assumptions and limitations
Same currency quote direction required; simple annualization and no prediction of eventual spot.
Worked example
With spot quote = 1.2, forward quote = 1.212, days to maturity = 90, simple annualized premium is approximately 4.0555556%.
What the result means
A positive value means the forward quote exceeds spot in the chosen quote direction.
Common questions
How should I interpret simple annualized premium?
A positive value means the forward quote exceeds spot in the chosen quote direction.
What should I check before using this result?
Same currency quote direction required; simple annualization and no prediction of eventual spot.
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.