Swap Calculator
Calculate forex swap (rollover) cost or credit for holding a position overnight, including the Wednesday triple-swap charge and annual carry projection.
Swap Calculator
Calculator
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Formula: Swap = Lots × Contract Size × Swap Rate × Point Size × Days
Worked example — Daily: -$70.00 | 7-day total: -$490.00 | With Wed triple: -$630.00
Formula
Swap = Lots × Contract Size × Swap Rate × Point Size × Days
The daily swap charge or credit equals the lot size times the contract size times the swap rate in points times the point size, which is 0.0001 on most pairs and 0.01 on JPY-quoted pairs. This is multiplied by the number of days held, with an extra 2 days added for each Wednesday rollover (triple swap) to account for the weekend.
Worked Examples
Example 1: EUR/USD Long Position — 7 Days
Problem:You hold 2 standard lots of EUR/USD long for 7 days. Swap long = -3.5 points, swap short = +1.2 points. Point size 0.0001. Account in USD (exchange rate = 1).
Solution:Daily swap (long): 2 × 100,000 × (-3.5) × 0.0001 = -$70.00/day Total for 7 days: -$70 × 7 = -$490.00 With Wednesday triple: 1 Wednesday = 2 extra days Adjusted total: -$70 × 9 = -$630.00 Annual cost if held: -$70 × 365 = -$25,550
Result:Daily: -$70.00 | 7-day total: -$490.00 | With Wed triple: -$630.00
Example 2: AUD/JPY Carry Trade — 30 Days
Problem:You hold 1 standard lot of AUD/JPY long for 30 days. Swap long = +1.2 points. It is a JPY-quoted pair, so point size = 0.01. Account in USD, so the conversion rate is USD/JPY = 150.
Solution:Daily swap: 1 × 100,000 × 1.2 × 0.01 = ¥1,200/day In USD: ¥1,200 ÷ 150 = $8.00/day 30-day total: ¥1,200 × 30 = ¥36,000 = $240.00 With 4 Wednesdays (8 extra days): ¥1,200 × 38 = ¥45,600 = $304.00 Annual income: ¥1,200 × 365 = ¥438,000 = $2,920.00
Result:Daily: +$8.00 | 30-day: +$240.00 | With Wed triple: +$304.00 | Annual: +$2,920.00
Frequently Asked Questions
What is a swap (rollover) in forex trading?
A swap, also called a rollover or overnight interest, is the interest rate differential between the two currencies in a forex pair that is charged or credited to your account when you hold a position overnight. Every currency has an associated interest rate set by its central bank. When you buy a currency with a higher interest rate and sell one with a lower rate, you earn a positive swap (credit). When you sell the higher-yielding currency and buy the lower-yielding one, you pay a negative swap (debit). Swaps are applied at the end of each trading day, typically at 5:00 PM Eastern Time (New York close). The exact swap rates are set by individual brokers and may differ from the theoretical interest rate differential due to broker markups, liquidity conditions, and administrative costs.
Why is there a triple swap on Wednesday?
The triple swap on Wednesday exists because of the settlement convention in the forex market. Forex trades settle on a T+2 basis, meaning a trade executed on Monday settles on Wednesday. When a position is held overnight from Wednesday to Thursday, the settlement moves from Friday to Monday, spanning the weekend (Saturday and Sunday). Since no swaps are charged on Saturday and Sunday even though interest accrues over those days, the Wednesday rollover accounts for all three days: Wednesday night itself plus Saturday and Sunday. Therefore, if you hold a position through Wednesday at 5 PM ET, you are charged or credited three times the daily swap rate. Some brokers apply the triple swap on Friday instead, so it is important to check your specific broker's policy. This mechanism ensures total annual interest charges correctly reflect 365 days regardless of weekends.
How do brokers determine swap rates?
Brokers determine swap rates based on the interest rate differential between the two currencies in a pair, but they also apply their own markup. The base calculation uses each currency's overnight benchmark rate — SOFR for USD, €STR for EUR, SONIA for GBP, TONA for JPY. These replaced the older interbank quotes: EONIA was discontinued in January 2022 in favour of the euro short-term rate, and the LIBOR panels were retired over the same period. The theoretical swap equals the difference between these rates, adjusted for the position direction. However, brokers typically charge a spread on both long and short swaps, meaning the positive swap you receive is lower than the theoretical value, and the negative swap you pay is higher. Some brokers offer swap-free (Islamic) accounts that comply with Sharia law by eliminating interest charges, though they may apply alternative fees. Swap rates change frequently as central banks adjust interest rates and interbank lending conditions evolve.
How do swap rates affect trading strategies?
Swap rates significantly impact several trading strategies. Carry trade strategies specifically seek to profit from positive swap rates by buying high-yielding currencies against low-yielding ones and holding positions for extended periods. For example, buying AUD/JPY when Australian rates are high and Japanese rates near zero. Swing traders who hold positions for days or weeks must factor swap costs into their profit calculations, as negative swaps can erode gains over time. Day traders who close all positions before the daily rollover time are generally unaffected by swaps. Position traders and long-term investors face the largest swap impact and should calculate the annual swap cost as a percentage of their position size. In periods of significant interest rate differentials between major economies, swap income or costs can materially affect overall trading performance.
Can you earn money from swap rates?
Yes, it is possible to earn money from positive swap rates, a strategy known as the carry trade. When you hold a long position in a currency pair where the base currency has a significantly higher interest rate than the quote currency, your broker credits your account with a positive swap each night. For example, on a USD-quoted pair where one point is 0.0001, a swap long rate of +5 points on one standard lot is 100,000 × 5 × 0.0001 = $50 per night; because the triple Wednesday rollover covers the weekend, the accrual runs across all 365 days, so an unchanged rate would be worth about $18,250 over a year. However, several risks exist: currency exchange rate movements can easily wipe out swap income, central banks may change interest rates unexpectedly, and broker swap rates may be adjusted without notice. Additionally, brokers take a markup that reduces your actual earnings below the theoretical interest differential. Successful carry traders typically combine swap income with technical or fundamental analysis to also profit from favorable price movements.
What does a swap quoted in points convert to in money?
Brokers usually publish swap in points rather than cash. The conversion here is lots × contract size × swap points × point value, so on a pair where a point is 0.0001, one swap point on a standard lot of 100,000 units equals 10 units of the quote currency. On pairs where a point is 0.01 — the JPY crosses — that same point is worth 100 times more, so restate your broker's figure in matching units before entering it.
Why are both the long and the short swap negative on some pairs?
Because the financing spread is applied to both directions. In theory the swap is symmetrical: what one side pays, the other should receive. Brokers widen the charge on the debit side and trim the credit on the other to cover their own funding and administration, so on many pairs both numbers print negative and their sum is the house margin. If you hold positions for weeks, compare that sum between brokers — it is the portion that has nothing to do with rate differentials.
At what holding period does swap outweigh the spread?
The spread is paid once at entry while swap accrues every night the position stays open, so divide the spread cost by the nightly swap to find the crossover. A $15 spread against a −$3 nightly swap is exactly matched on the fifth night and overtaken on the sixth, and over a month the financing cost is several times the entry cost. That is why comparing brokers on entry spread alone is the wrong test for anyone holding positions for weeks.
Is a swap-free Islamic account actually cheaper?
A swap-free account removes overnight interest to comply with Sharia rules, but the broker is still funding the position. The cost normally reappears as a fixed administration charge per lot per night, often after a grace period of a few days, or as a wider spread on eligible instruments. Total that administration fee across your expected holding period and set it against the swap you would otherwise have paid before assuming the account saves money.
Which exchange rate should be entered to convert swap to the account currency?
Swap accrues in the quote currency of the pair, so it must be converted before it means anything on your statement. The figure is divided by the rate you supply, which should express how many units of the pair's quote currency one unit of your account currency buys. For a USD account trading EUR/USD the quote currency is already USD, so the rate is 1; for a USD account on a JPY-quoted pair, enter the USD/JPY rate.
References
Reviewed for accuracy by Daniel Agrici, Founder & Lead Developer · Editorial policy
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