Calculate the impact of interest rate swaps on your financial obligations
An interest rate swap is a financial derivative that allows two parties to exchange interest rate cash flows based on a notional principal amount. This calculator helps you understand the potential impact of interest rate swaps on your financial obligations.
Interest rate swaps are commonly used to hedge against interest rate risk or to speculate on interest rate movements. By exchanging a fixed interest rate for a floating rate, or vice versa, parties can manage their exposure to changes in interest rates.
The calculator below allows you to input key parameters and see the potential impact of an interest rate swap on your financial obligations.
| Parameter | Example 1 | Example 2 |
|---|---|---|
| Notional Amount | $1,000,000 | $5,000,000 |
| Fixed Interest Rate | 4% | 3.5% |
| Floating Interest Rate | LIBOR + 1% | LIBOR + 0.5% |