Carry Trade Return Calculator
Carry Trade Return: a planned Super Calculator tool. Covers funding currency rate (%). Stub page while the tool and its worked example are prepared. Scope is.
Carry Trade Return Calculator is a planned calculator in the finance section of Super Calculator, covering forex.
What this calculator will compute
Inputs: funding currency rate (%), target currency rate (%), notional (currency), leverage, holding period and expected exchange rate change (%).
Outputs: carry earned (currency), exchange rate profit or loss (currency), total return (%) and break even depreciation (%).
Formula, recorded as scope and not yet verified against a primary source: Return equals the interest rate differential earned on the notional plus or minus the exchange rate movement, leveraged by the position size relative to equity. The uncovered interest parity result implies the differential should be offset by depreciation on average, and the historical failure of that relation is the empirical basis of the trade.
Status
This page is a stub. The calculator is not built, no figure on this page has been verified against the authority that sets it, and nothing here should be used to make a decision. The page exists so that the site structure is complete and so that articles can link this concept on first mention.
The stub carries noindex, nofollow and is excluded from the sitemap.