Forward Rate Agreement Calculator

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

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