Interest Rate Parity Calculator
Test whether exchange rates are in equilibrium. Say goodbye to arbitrage gaps and hello to instant interest rate parity analysis.
How It Works
Step 1: Access the Interest Rate Parity Calculator
Open the financial economics calculator.
Step 2: Input Spot Rate, Forward Rate, and Interest Rates for Both Currencies
Enter the key figures for the exchange rate and the risk-free rates in both countries.
Step 3: Click the Calculate Button
Press 'Test Parity'.
Step 4: Review the Arbitrage Opportunity
The tool will show if the forward exchange rate is consistent with the interest rate differential, or if a covered arbitrage opportunity exists.
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