basic

Forward Rate from Two Spot Rates Calculator

F₁,₂ = ((1 + s₂)^t₂ / (1 + s₁)^t₁)^(1/(t₂ − t₁)) − 1.

Compute the implied forward rate between two future periods from the corresponding zero-coupon spot rates: F = ((1 + s₂)^t₂ / (1 + s₁)^t₁)^(1/(t₂ − t₁)) − 1. Used to construct the term structure of forward rates and to identify carry-trade or rate-arbitrage opportunities.

Nadia Almasri By Nadia Almasri
Published Last reviewed 1 min read

Inputs

%
yr
%
yr

Results

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How to use this calculator

  1. Fill in the inputs above using the units you already have.
  2. Values update automatically as you type — no submit button needed.
  3. Hover any result row for the underlying formula and intermediate values.

Formula

F₁,₂ = ((1 + s₂)^t₂ / (1 + s₁)^t₁)^(1/(t₂ − t₁)) − 1.

In depth

Compute the implied forward rate between two future periods from the corresponding zero-coupon spot rates: F = ((1 + s₂)^t₂ / (1 + s₁)^t₁)^(1/(t₂ − t₁)) − 1. Used to construct the term structure of forward rates and to identify carry-trade or rate-arbitrage opportunities.