Forward Volatility Calculator
The implied volatility between two expiries extracted from the term structure — σ_fwd from total-variance arithmetic.
Formula
Variance, not vol, adds across time. When an event pumps front-month IV, the forward vol shows what the market charges for the calm after — if that's below your view of normal vol, the calendar buying the back month is mispriced in your favor.
Not financial advice — for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
Need forward volatility calculator results fast? Analysts, founders, traders and finance professionals use the Forward Volatility Calculator to skip the spreadsheet and get a defensible answer in one step — free, private and instant.
About Forward Volatility Calculator
The implied volatility between two expiries extracted from the term structure — σ_fwd from total-variance arithmetic. Variance, not vol, adds across time. When an event pumps front-month IV, the forward vol shows what the market charges for the calm after — if that's below your view of normal vol, the calendar buying the back month is mispriced in your favor. The governing relationship is σ²_fwd = (σ₂²T₂ − σ₁²T₁)/(T₂ − T₁). The Forward Volatility 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 Forward Volatility Calculator
- 1Enter IV of near expiry (%), Near expiry (days), IV of far expiry (%), Far expiry (days) into the Forward Volatility Calculator.
- 2The result is computed automatically using σ²_fwd = (σ₂²T₂ − σ₁²T₁)/(T₂ − T₁) — there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use Forward Volatility Calculator?
- ✓Computes forward volatility 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 Forward Volatility Calculator?+
Forward Volatility Calculator uses σ²_fwd = (σ₂²T₂ − σ₁²T₁)/(T₂ − T₁). Variance, not vol, adds across time. The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the Forward Volatility Calculator need?+
Enter IV of near expiry (%), Near expiry (days), IV of far expiry (%), Far expiry (days) and the result updates immediately — there is no button to press. Change any value to model a different scenario in real time.
Is the Forward Volatility 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 Forward Volatility Calculator?+
When an event pumps front-month IV, the forward vol shows what the market charges for the calm after — if that's below your view of normal vol, the calendar buying the back month is mispriced in your favor.
What is the Forward Volatility Calculator based on?+
The method follows authoritative sources: Gatheral — forward variance; variance additivity. The formula and references are shown on the page so you can verify and cite the result.
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