Cost of Carry Futures Price Calculator

The Cost of Carry Model prices a futures contract based on spot price, carrying costs, and time to maturity: $$F_t = S_t e^{(r + d)T}$$

Spot Price Sₜ ($): Risk-Free Rate r (decimal): Storage Cost / Dividend d (decimal): Time to Maturity T (years):

Interpretation

The futures price reflects the spot price adjusted for carrying costs.
Positive storage costs or dividend yields increase or decrease the fair futures price.
Useful for pricing commodity, equity, and FX futures.

Key Assumptions

Continuous compounding of interest rates.
Carrying costs are known and constant.
Market is frictionless and arbitrage-free.
No sudden jumps in spot price (continuous paths).