Currency Hedged vs Unhedged Returns Calculator
Foreign asset return in your currency — FX gain/loss stacked on local return versus the hedged path minus carry cost.
Formula
For INR investors the hedge costs the full 3-4% rate differential — historically a bad trade since the rupee depreciates roughly that much anyway, making unhedged US equity a structural double-engine. High-rate-currency investors face the opposite logic; the carry decides.
Not financial advice — for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
Disclaimer: This tool is for general informational and estimation purposes only and is not professional financial, tax, accounting or legal advice. All figures are estimates — verify with a qualified professional before making decisions. Read the full disclaimer.
Need currency hedged vs unhedged returns calculator results fast? Analysts, founders, traders and finance professionals use the Currency Hedged vs Unhedged Returns Calculator to skip the spreadsheet and get a defensible answer in one step — free, private and instant.
About Currency Hedged vs Unhedged Returns Calculator
Foreign asset return in your currency — FX gain/loss stacked on local return versus the hedged path minus carry cost. For INR investors the hedge costs the full 3-4% rate differential — historically a bad trade since the rupee depreciates roughly that much anyway, making unhedged US equity a structural double-engine. High-rate-currency investors face the opposite logic; the carry decides. The governing relationship is unhedged = (1+r_local)(1+fx) − 1; hedged ≈ r_local − carry. The Currency Hedged vs Unhedged Returns Calculator computes entirely in your browser — free, private (your figures never leave your device) and instant, recalculating live as you change any input.
How to use Currency Hedged vs Unhedged Returns Calculator
- 1Enter Asset return (local currency) (%), Foreign ccy vs yours (%), Hedging cost (carry) (%/yr) into the Currency Hedged vs Unhedged Returns Calculator.
- 2The result is computed automatically using unhedged = (1+r_local)(1+fx) − 1; hedged ≈ r_local − carry — there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use Currency Hedged vs Unhedged Returns Calculator?
- ✓Computes currency hedged vs unhedged returns calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter stay private
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
What is the formula behind the Currency Hedged vs Unhedged Returns Calculator?+
Currency Hedged vs Unhedged Returns Calculator uses unhedged = (1+r_local)(1+fx) − 1; hedged ≈ r_local − carry. For INR investors the hedge costs the full 3-4% rate differential — historically a bad trade since the rupee depreciates roughly that much anyway, making unhedged US equity a structural double-engine. The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the Currency Hedged vs Unhedged Returns Calculator need?+
Enter Asset return (local currency) (%), Foreign ccy vs yours (%), Hedging cost (carry) (%/yr) and the result updates immediately — there is no button to press. Change any value to model a different scenario in real time.
Is the Currency Hedged vs Unhedged Returns Calculator free, and is my data private?+
Yes — it is completely free with no sign-up or usage limit, and it runs entirely in your browser, so the numbers you enter are never uploaded or stored on any server. It is for informational and analytical use, not financial advice.
What should I watch out for when using the Currency Hedged vs Unhedged Returns Calculator?+
High-rate-currency investors face the opposite logic; the carry decides.
What is the Currency Hedged vs Unhedged Returns Calculator based on?+
The method follows authoritative sources: Covered interest parity; INR depreciation history. The formula and references are shown on the page so you can verify and cite the result.
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