Interest Rate Parity Calculator
Result
Interest Rate Parity Calculator Interest Rate Parity (IRP) Calculator evaluates whether the interest rate differential between two currencies matches the forward premium/discount. Formula: (1 + r_domestic) = Spot × (1 + r_foreign) / Forward. Used in forex — free online calculator.
Formula
- Interest Rate Parity Calculator calculates its result from Spot, R F, R D. It uses the formula IRP Forward = Spot × (1 + r_d) / (1 + r_f). Change any input to recalculate the result instantly.
- The main inputs are Spot, R F, R D. Enter them in the units and format shown in the calculator.
- Use monetary amounts, rates and time periods exactly as labeled; the result reflects the assumptions entered on this page.
- Changing any input above recalculates the result with the same calculation engine used by this page.
Example: Interest Rate Parity
- Spot: 2
- R F: 3
- R D: 4
Using Spot = 2, R F = 3, R D = 4, the calculated result is 2.5.
Sample result: Calculating…
Frequently asked questions
What does the Interest Rate Parity calculate?
Interest Rate Parity Calculator Interest Rate Parity (IRP) Calculator evaluates whether the interest rate differential between two currencies matches the forward premium/discount. Formula: (1 + r_domestic) = Spot × (1 + r_foreign) / Forward. Used in forex — free online calculator.
Which values should I enter?
Enter Spot, R F, R D using the units and format shown beside each field.
What formula does this calculator use?
The calculator uses the following relationship: IRP Forward = Spot × (1 + r_d) / (1 + r_f).
Why might my result differ from another source?
Results can differ when another source uses different units, rounding rules, conventions or assumptions. Compare the inputs and definitions before comparing results.
Does the result update automatically?
Yes. Changing an input updates the result using the same calculation engine shown on this page.