Fisher Equation

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Finance

Fisher Equation is a fast, free finance calculator. Enter Spot Rate, Domestic Rate and Foreign Rate to get an instant, accurate result — complete with the formula, a step-by-step worked example, and answers to common questions, all on one page and private to your browser.

Formula

F = S × (1 + r_domestic) / (1 + r_foreign)
  • Fisher Equation embodies Interest Rate Parity
  • Forward rate adjusts for rate differential
  • Prevents arbitrage opportunities

USD/EUR Forward

Inputs
  • Spot Rate: 1.2 ratio
  • Domestic Rate: 3 %
  • Foreign Rate: 1.5 %

Spot 1.20, 3% US rate, 1.5% EU rate → Forward 1.2178 (1.48% premium)

Frequently asked questions

What's the difference from Currency Forward?
Fisher Equation is a specific form of Interest Rate Parity for direct forward rate calculation.