Work out swap fixed rate instantly with clear inputs, formula shown and shareable results.
The par swap rate is the fixed rate that makes the swap worth nothing at inception: one minus the final discount factor, divided by the sum of all discount factors. It is a discount-weighted average of the forward rates in the curve.
Par swap rate
Fixed rate = (1 - DF_n) / Σ DF_t
Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.
Because it averages across the whole curve, and earlier years carry lower rates on an upward-sloping curve.
By construction — the fixed rate is chosen so the fixed and floating legs have equal present value.