What's my estimated carry trade return from the interest rate differential?
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Fill in the fields on the left and click Calculate to see the estimated carry return this position earns or pays from the interest rate differential alone.
How this is calculated
The rate differential is the base currency's rate minus the quote currency's rate when you're long the pair, or the quote currency's rate minus the base currency's rate when you're short. A positive differential means the position earns carry; a negative differential means it pays carry.
Notional value in USD uses the same convention as our other forex calculators: position size times the exchange rate when USD is the quote currency, or position size directly when USD is the base currency.
Annual carry equals the notional value in USD times the rate differential. The amount for your actual holding period prorates that annual figure by days held divided by 365.
This is the theoretical carry from the published interest rate differential alone. It is not the same number your broker will actually credit or charge you, brokers apply their own markup and post it as a daily swap or rollover rate, which is usually smaller than the raw differential and can change without notice. Use our swap and rollover fee calculator for your broker's actual quoted rate.
Risk & liability disclaimer: This calculator produces a mathematical estimate based on the numbers you enter, not live interest rates, live exchange rates, or your actual broker's swap rate. Central bank interest rates and exchange rates both move continuously and the actual carry a broker credits or charges almost always differs from the raw rate differential. This is not financial advice and does not guarantee any trading outcome. Trading Habits is not a broker-dealer, registered investment adviser, or tax professional, and is not affiliated with any broker, exchange, central bank, or data provider. Forex trading involves substantial risk of loss and is not suitable for everyone. You could lose some or all of the capital you trade with.
Know the Real Cost Before You Enter
More Trading Tools
The interest rate differential is the theory. These tools cover the actual costs a broker charges on top of it.