📦 Futures Contracts Calculator
Theoretical futures price from spot, financing rate, income/dividend yield, and time.
Theoretical Futures Price (F)
101.5113
How to Use This Calculator
Provide the current spot price, the annual financing rate, any continuous income/dividend yield, and the time to delivery in years. The calculator applies the cost‑of‑carry model with continuous compounding: F = S·e^((r−q)T). This captures the financing cost of holding the asset (r) and the benefit of any income received while holding it (q). For commodities with storage costs or convenience yield, more detailed models are required, but this simple framework is a widely used baseline for equities, indexes, and many financial futures.
Formula
F = S · e^((r − q)T)
Where r is financing rate and q is continuous income/dividend yield.
Frequently Asked Questions
What about storage or convenience yield?
For commodities, add storage costs to r and subtract convenience yield from q in an effective cost of carry. The exact treatment depends on how those costs/benefits accrue.
Which compounding convention is used?
Continuous compounding for clarity. If your market quotes discrete rates, convert them to a continuous equivalent or adapt the formula using (1+r)^T instead of e^(rT).