Forward Rate Agreement Calculator

Calculate FRA settlement amounts and understand forward rate agreement pricing for interest rate hedging.

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Important Financial Disclaimer

This calculator provides estimates based on standard financial formulas from verified references. Results are for informational and educational purposes only and should not be considered as professional financial, investment, or tax advice.

For important financial decisions such as loans, investments, mortgages, retirement planning, or tax matters, please consult with qualified financial advisors, certified financial planners, or licensed tax professionals who can review your specific situation.

Calculations may not account for all variables specific to your circumstances, local regulations, or current market conditions. Always verify results and consult professionals before making financial commitments.

Not a substitute for professional financial advice

FRA Details

Notional Principal

Your Position

Start Month

Contract Length

FRA Rate (Agreed Rate)

Reference Rate at Settlement (SOFR)

FRA locks in an interest rate for a future borrowing/lending period. Settlement is the present value of the rate difference, paid at the start of the contract period.

Settlement Amount (3x6 FRA)

$6,165.23

Seller pays Buyer

FRA Rate

5.25%

Reference Rate

5.50%

Your Outcome

You RECEIVE $6,165.23

Rate difference: 0.25% (Reference > FRA)

Interest Comparison

Interest at FRA Rate$131,250.00

Interest at Market Rate$137,500.00

Hedge Value$6,250.00

FRA Notation: 3x6

- Contract starts in 3 month(s)
- Contract period: 3 month(s)
- Settlement: At start of contract period
- Buyer benefits if rates rise above FRA rate
- Seller benefits if rates fall below FRA rate

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