Forward Price with Cost of Carry Calculator Excel Template
Forward Price with Cost of Carry Calculator Excel Template
Interactive Excel Financial Model
Download, customize, and integrate into your own analysis
What's Included
- Interactive financial model with live Excel formulas
- All formulas visible and fully editable
- Professional formatting with color-coded inputs & outputs
- Formula reference sheet with variable definitions
- Step-by-step instructions sheet
- Compatible with Microsoft Excel 2016 and later
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Price range: $0.00 through $20.00
Calculate forward prices with full cost of carry model. Accounts for dividends, storage costs, convenience yield, and financing.
Online Calculator vs Excel Template
| Feature | Online | Excel |
|---|---|---|
| Instant use — no download | ✓ | — |
| Works offline | — | ✓ |
| Customize formulas & layout | — | ✓ |
| Save & share with colleagues | — | ✓ |
| Integrate into your own models | — | ✓ |
| Print-ready formatting | — | ✓ |
About This Template
Calculate forward prices with full cost of carry adjustments using this professional Excel template. The Forward Price with Cost of Carry Calculator Excel template provides the complete F = (S - gamma + theta)(1+r)^T formula implementation, accounting for dividends, storage costs, convenience yield, and financing.
What You Can Calculate
This template computes six key outputs from your inputs:
- Forward Price F0(T) - The theoretical no-arbitrage forward price incorporating all cost of carry components
- Adjusted Spot - Spot price adjusted for net benefits and costs (S0 - gamma + theta)
- Net Carry Cost - The difference between holding costs and benefits, indicating contango or backwardation pressure
- Compound Factor - The time value multiplier (1+r)^T for your specified maturity
- Premium/Discount - Dollar difference between forward and spot prices
- Premium % - Percentage premium or discount relative to spot
Required Inputs
Enter five values to calculate forward prices:
- Spot Price (S0) - Current market price of the underlying asset
- PV of Benefits (gamma) - Present value of dividends, coupons, or convenience yield received during the holding period
- PV of Costs (theta) - Present value of storage, insurance, and other carrying costs
- Risk-Free Rate (r) - Annualized risk-free interest rate as a percentage
- Time to Maturity (T) - Time until forward contract expiration in years
Methodology
The template implements the full cost of carry model: F0(T) = (S0 - gamma + theta) x (1 + r)^T. Benefits reduce the forward price (holder receives income), while costs increase it (holder pays expenses). The compound factor accounts for financing costs over the contract term using discrete compounding.
Assumptions & Limitations
- Benefits and costs must be entered as present values, not future values
- Uses discrete compounding (1+r)^T, not continuous compounding e^(rT)
- Assumes no-arbitrage conditions hold in the market
- Risk-free rate should be annualized and match the time period basis
Frequently Asked Questions
Premium % shows the forward price relative to spot as a percentage. Positive values indicate contango (forward trades above spot), negative values indicate backwardation. Use this to quickly assess whether cost of carry factors are pushing the forward price up or down.
Yes. Calculate the present value of each expected dividend separately using PV = FV / (1+r)^t, then enter the total sum in the PV of Benefits field. The template handles any combined PV amount.
This occurs when benefits (gamma) exceed costs (theta) plus financing - typically with high-dividend stocks, bonds with large coupons, or commodities with strong convenience yield. The template correctly calculates this backwardation scenario.
A fully interactive financial model with live Excel formulas, an Instructions sheet with usage guide, and a Formula Reference sheet with variable definitions and model assumptions. All formulas are visible and editable.
Microsoft Excel 2016 or later. The template uses standard Excel formulas only — no macros, VBA, or add-ins required.
Yes. All cells are fully editable. You can modify any formula, add your own calculations, change formatting, or integrate the model into your existing spreadsheets.
The online calculator runs in your browser for quick calculations. This Excel template gives you a portable, offline financial model you can customize, save, share with colleagues, and integrate into your own analysis.
This template is provided for educational and personal use. You may use it in your own professional analysis and presentations. Redistribution or resale of the template itself is not permitted.
You can re-download the latest version from your account or by requesting a new download link. Free downloads are limited to 5 per email address per month.
