Estimate the cost or benefit of hedging a foreign-currency exposure back into GBP with a forward contract, using covered interest rate parity, versus staying unhedged.
Données vérifiées · July 2026
🧮
Fill in the fields to see results in real time
Create a free account to save your calculations, access history, and export to PDF. Upgrade to Pro for all 319 calculators.
Posez-la à Solva, le conseiller financier IA d'ActioFin — réponses sourcées sur les textes officiels.
5 questions gratuites par jour avec un compte gratuit
Forward points are derived from the GBP vs foreign money-market interest rate differential over the contract term: a higher GBP rate than the foreign rate produces a forward premium (forward rate above spot); a lower GBP rate produces a forward discount. This is a planning tool for sizing hedge decisions — actual bank forward quotes include a dealer spread and should be used for execution.
€100,000 exposure, spot rate 0.85, GBP rate 5%, foreign rate 3%, 3-month forward: forward rate around 0.8543, valuing the exposure at roughly £85,430 versus £85,000 at spot.
Enter the foreign-currency exposure amount and today's spot rate (GBP per unit of foreign currency).
Enter the GBP and foreign money-market interest rates, and the forward contract term in months.
Optionally enter a known forward rate to override the computed one.
Enter an expected future spot rate to compare the hedged outcome against staying unhedged.
Last data update
July 7, 2026
Sources and references
Bank of England — official interest rates (bankofengland.co.uk/monetary-policy/the-interest-rate-bank-rate); covered interest rate parity (market-standard forward pricing convention), 2025/26.
The data in this calculator is updated regularly to reflect the latest official rates. When in doubt, consult the official sources listed above.
The forward rate reflects the interest rate differential between GBP and the foreign currency over the contract term — this is covered interest rate parity, not a forecast of where the spot rate will actually move.
Not necessarily — hedging removes uncertainty but also removes upside if the currency moves in your favour. Compare the hedged value against your expected future spot scenario to decide.