What this calculator does
Futures fair value (cost of carry) works out theoretical futures price implied by the spot price, financing rate and yield. Enter your own figures above and the answer updates as you type: nothing is fixed in the code, so the result reflects exactly the numbers you supply.
The formula this calculator evaluates is printed under the tool and explained below, so you can check the working by hand or reuse it in a spreadsheet.
The formula
FormulaF = S · e^((r − q)·T) the cost-of-carry model, with r = financing rate, q = dividend / convenience yield, T = time to expiry
The inputs explained
| Field | What to enter |
|---|---|
| Spot price ($) | A number, measured in your currency. Starts at 5000. |
| Risk-free / financing rate (%) | A number, measured in %. Starts at 5. |
| Dividend yield (or storage cost, entered negative) (%) | A number, measured in %. Starts at 1.5. |
| Time to expiry (years) | A number, measured in years. Starts at 0.25. |
| Actual market futures price (optional) ($) | A number, measured in your currency. Starts at 5050. |
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the answer changes with spot price
Every other input is held at the calculator’s starting values while spot price varies. Select any row to load that scenario into the calculator.