Carry trade calculator
See what a forex carry trade earns from the interest rate gap, what an exchange rate move does to it, and how far the higher-yielding currency can fall before the interest is wiped out. Free, no sign-up, nothing leaves your browser.
Amounts are in the currency you borrow. The starting rates are only an example; use today's rates. A minus move means the held currency fell. This uses simple interest and leaves out spreads, fees and leverage. It is a calculator, not advice.
How a carry trade works
A carry trade means borrowing in a currency whose central bank rate is low, exchanging it into a currency whose rate is higher, and holding that currency to earn its interest. The trader pays the lower interest on the loan and keeps the difference, if the exchange rate holds.
The main risk
If the higher-yielding currency falls against the one borrowed, the loss on the exchange rate can wipe out the interest earned, and more. When many traders exit at once, carry trades can unwind quickly and move markets sharply. Leverage makes both the gains and the losses larger.
Launch your own multi-currency money app
SendPay does not offer forex trading, leverage or hedging. A SendPay platform lets your customers hold GBP, EUR and USD and exchange between them at a fee you set, powered by licensed partners.