Swap Fixed Rate Calculator

Work out swap fixed rate instantly with clear inputs, formula shown and shareable results.

About Swap Fixed Rate Calculator

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.

Formula

Par swap rate

Fixed rate = (1 - DF_n) / Σ DF_t

DF: Discount factor

Worked example

With the default values below, Swap Fixed Rate Calculator returns Par Swap Fixed Rate of 7.3359%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Notional Amountminimum 0: 500,000,000
One-Year Zero Rateaccepts 0–100 %: 6.5 %
Zero Rate At Final Maturityaccepts 0–100 %: 7.4 %
Swap Tenor In Yearsaccepts 1–30: 5

Results

Par Swap Fixed Rate: 7.3359%
Annual Fixed Leg Payment: $36,679,621.30
Sum Of Discount Factors: 4.092088
Final Discount Factor: 0.699808

Step by step

1Values used
2Par swap rate
3Par Swap Fixed Rate= 7.3359
4Annual Fixed Leg Payment= 36,679,621.30
5Sum Of Discount Factors= 4.092088
6Final Discount Factor= 0.699808

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 6 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
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.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

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.

Frequently Asked Questions

Why is the swap rate below the final zero rate?

Because it averages across the whole curve, and earlier years carry lower rates on an upward-sloping curve.

What makes the swap worth zero at inception?

By construction — the fixed rate is chosen so the fixed and floating legs have equal present value.