Forex Swap Calculator

A forex swap (also called a rollover fee) is the cost or credit applied to your account when you hold a position overnight. It derives from the interest rate differential between the two currencies in the pair you are trading.

When you buy a currency with a higher interest rate than the one you sell, the swap may be positive -- your broker credits your account. When the bought currency has a lower rate, you pay. In practice, brokers add a markup to both sides, which means positive swaps are smaller and negative swaps larger than the raw interbank differential.

The core of a swap rate is the overnight interest rate differential. Central bank rates for each currency set the baseline. For example, if the ECB rate is 2.25% and the Fed funds rate is 3.75%, holding a long EUR/USD position means you effectively borrow USD (at the higher rate) and lend EUR (at the lower rate), resulting in a net cost.

Brokers then apply their own markup -- typically 0.25% to 1.0% on each leg. This is why swap rates differ between brokers even for the same pair on the same day. The formula most platforms use:

Where point value is $0.10 per point for most USD-quoted pairs on a standard lot, and varies for cross-pairs and JPY pairs.

Swaps are applied at the daily rollover, which occurs at 17:00 Eastern Time (New York close). Any position open at that moment incurs the swap. If you open and close a trade within the same session, no swap is charged.

On Wednesday evenings, most brokers apply a triple swap. This covers the weekend: forex settles on a T+2 basis, so a Wednesday rollover settles on Friday, and the next settlement after that is Monday. The triple charge accounts for Saturday and Sunday in one go. Some pairs -- particularly those involving currencies with Thursday public holidays -- may have the triple swap on a different day.

For day traders, swaps are irrelevant -- close before the rollover. For swing and position traders, several approaches help:

• Compare brokers: swap rates vary by 30-50% between brokers. A lower-markup broker can save significant sums over weeks of holding.
• Trade in the direction of the carry: when possible, align your trade direction with the positive swap side. Carry trades profit from this explicitly.
• Reduce lot size: smaller positions mean proportionally smaller swap costs.
• Use swap-free accounts: many EU-regulated brokers offer Islamic or swap-free accounts that replace overnight interest with flat fees or no charge.
• Shorten holding periods: if your strategy permits, taking profits earlier reduces cumulative swap exposure.

Islamic (swap-free) accounts comply with Sharia law by removing overnight interest charges. Under EU regulation, several CySEC- and FCA-authorised brokers offer these accounts to all clients, not only those trading for religious reasons.

Be aware that swap-free accounts often carry alternative costs: wider spreads, a fixed administration fee per night, or a charge applied after a position has been held for a certain number of days. Always compare the total holding cost, not just the absence of a swap label. See our best Islamic forex accounts in Europe guide for a full comparison.