Compare export forward FX with an unhedged receivable
A fixed foreign-currency invoice can produce different KRW receipts depending on the conversion rate.
An exporter paying materials and wages in KRW needs to check both proceeds and the date cash becomes available.
This calculator compares one confirmed export receivable with a bank sell-forward quote at the same maturity.
It separates the hedged portion from the remaining spot exposure and checks your minimum net KRW receipt target.
Why amounts and dates both matter
A lower spot rate can reduce unhedged proceeds, while a higher spot rate can leave the fixed forward portion behind.
Use the comparison to assess a payment budget rather than relying on an FX prediction.
Posting collateral or paying suppliers before receipt can create a funding gap even when the maturity target is met.
The net receipt target and the payment-calendar cash gap are separate outputs.
This cross-border model uses KRW settlement; it does not apply a statutory fee, collateral percentage or eligibility test.
Documents, inputs and exchange-rate units
Receivable and maturity
Verify the currency, amount and expected receipt date against the export contract and payment records.
Enter the bank rate for selling foreign currency, not an import buying quote or a reference mid-market rate.
For a positive hedge, forward maturity must match the foreign receipt and KRW conversion date.
Different dates withhold this simple comparison; ask the bank for a matching quote.
KRW target and payments
The minimum net receipt is the KRW amount this export payment itself must generate.
Opening cash and scheduled payments belong to a separate cash ledger; do not add the same payments into the target twice.
Enter up to 12 payment rows from start through receipt, including multiple payments on the same date.
Later payments and other revenue inflows are outside this analysis.
Numeric inputs support up to six decimal places.
USD, EUR, JPY and GBP rates and unit fees all use KRW per ONE foreign unit.
A JPY quote of KRW 920 per 100 yen must be entered as KRW 9.2 per yen.
Enter the receivable in yen, too, so the rate is not overstated by a factor of 100.
The currency selector labels the unit; it does not retrieve a live quote.
Net KRW receipts and the unhedged difference
Q is the foreign amount, h is the hedge share from 0 to 1, F is the sell-forward rate and S is your maturity spot-rate assumption.
K is the fixed forward fee, vF and vS are separate KRW fees per forward and spot foreign unit, and C is the common receipt fee.
The fixed forward fee applies once for any positive hedge; a 0% hedge has no forward fee or collateral.
Gross conversion G = QhF + Q(1−h)S
Total fees T = I(h)K + Qh vF + Q(1−h)vS + C
Net receipt R = G − T
Unhedged R0 = Q(S−vS) − C
Difference Δ = Qh(F−S−vF+vS) − I(h)K
I(h) is 1 for a positive share and 0 for no hedge.
Converted revenue is not operating profit: materials, income taxes, loan interest and accounting valuation gains or losses are excluded.
Collateral principal is also excluded from fees and tracked separately as restricted cash.
Receipt and cash comparisons use exact integer arithmetic for supported decimal inputs before display rounding.
Separate explicit fees from embedded spread
Fixed and per-unit fees
Convert a separate proportional charge into KRW per foreign unit.
Enter a once-only charge in the fixed forward fee.
The model pays that fixed fee at the start and the unit fees and common receipt fee on the receipt date.
If your bank uses a different charge or payment structure, review the actual cash timing separately.
Avoid counting spread twice
If the quoted customer rate includes the bank spread, do not add that spread again as a unit fee.
Minimum fees and tiered pricing cannot always be represented by the same fixed and per-unit assumptions.
Request fresh fees and collateral terms when changing the hedge share.
The example charges are synthetic inputs, not market averages, statutory tariffs or universal bank charges.
Use the calculator step by step
- Verify the receivable. Confirm the foreign amount and receipt date; a split receipt needs separate analysis.
- Obtain a matching quote. Check the sell-forward rate, separate fees, collateral for the selected share and release date.
- Enter the KRW budget. Include cash before collateral and all wage and supplier payments through receipt.
- Set your own FX scenarios. Lower, base and higher rates carry no probability and are not forecasts.
- Review two results. Compare net proceeds with the receipt target, then inspect peak external funding in the cash ledger.
- Save the worksheet. The TXT includes inputs, boundaries, the payment ledger and assumptions for your bank discussion.
Without the receivable and quote confirmations, results are marked as an illustrative comparison.
Checking the boxes does not guarantee trade approval or future proceeds.
Editing inputs removes the previous result; calculate again before saving the updated worksheet.
Worked example: USD 100,000 with a 70% hedge
Assume Q = USD 100,000, F = KRW 1,350 per USD, a 70% hedge, K = KRW 100,000, vF = KRW 0.5, vS = KRW 1 and C = KRW 50,000.
The minimum net receipt target is KRW 132,000,000.
USD 70,000 is hedged and USD 30,000 remains exposed; total fees are KRW 215,000.
These figures are fictional inputs, not a bank product quote or an FX forecast.
Synthetic USD 100,000 export receipts with a 70% hedge versus no hedge, amounts in KRW| Scenario | Maturity FX | Hedged net | Unhedged net | Difference |
|---|
| Lower | 1,250 | 131,785,000 | 124,850,000 | +6,935,000 |
| Base | 1,350 | 134,785,000 | 134,850,000 | −65,000 |
| Higher | 1,450 | 137,785,000 | 144,850,000 | −7,065,000 |
The lower scenario improves proceeds by KRW 6,935,000 compared with no hedge, yet misses the target by KRW 215,000.
A positive difference does not itself mean the budget is covered.
A full hedge nets KRW 134,800,000, equivalent to KRW 1,348 per foreign unit after fees.
Always compare the target with net proceeds after fixed and receipt fees.
Read the FX break-even and feasible hedge shares
Crossing against no hedge
For h > 0, the comparison crossing is S* = F−vF+vS−K/(Qh).
The example crosses at approximately KRW 1,349.071429 per USD.
Below that rate the hedge receives more; above it the unhedged strategy receives more.
At 0% the strategies are identical at every FX rate, so there is no unique crossing.
If the crossing is nonpositive, the hedge cannot outperform at any positive maturity rate.
Rate needed for your receipt target
For a partial hedge, Sneed = (N+T−QhF)/(Q(1−h)).
The example needs approximately KRW 1,257.166667 or higher.
A 100% hedge has no remaining spot units, so its fixed net receipt is compared directly with N.
A nonpositive threshold means all positive rates meet the target, but receipt timing and cash availability still matter.
A lower bound is not the only possible result
At S = 1,250, the example needs approximately 72.139303% hedging, shown as a 72.14% lower bound at a 0.01% step.
In a higher-rate scenario, more hedging can reduce proceeds and produce a maximum feasible share.
A fixed fee can also make 0% feasible while tiny positive hedges fail.
The calculator reports zero-share feasibility separately from the positive interval; lower bounds round up and upper bounds round down.
The interval is a proceeds condition, not a bank trading limit or recommended ratio.
Collateral and the payment-calendar cash gap
The ledger subtracts fixed forward fees and collateral from opening cash first.
Payments reduce cash in date order; on receipt it adds gross conversion less maturity unit fees and the common receipt fee.
The already-paid fixed fee is not deducted again.
Collateral released after receipt stays restricted at the analysis horizon.
Even a same-day release follows payments as a conservative ordering assumption.
Worked cash schedule
Assume KRW 30,000,000 opening cash and KRW 10,000,000 collateral, starting October 8, 2026, with receipt January 8, 2027 and collateral release January 9, 2027.
Pay KRW 25,000,000 on November 8, 2026 and KRW 100,000,000 on receipt day.
If converted cash is available before that payment, the lower scenario reaches −KRW 5,100,000.
Peak external funding is KRW 5,100,000 and closing spendable cash is KRW 26,785,000.
KRW 10,000,000 collateral is still locked; the unhedged closing cash is KRW 29,850,000.
If the same-day payment happens first, peak funding rises to KRW 105,100,000 for the hedge and KRW 95,000,000 without it.
Closing cash can be unchanged while intraday funding needs differ.
Negative balances are before borrowing, not evidence that a bank will approve that amount.
Peak funding is the deepest cumulative deficit; adding every row deficit would count the same gap repeatedly.
Three practical exporter scenarios
Supplier payments are already fixed in KRW
Set the receipt target and check the lower FX scenario.
Even if hedged proceeds meet the target, payments before receipt need separate funding.
Gross converted revenue alone does not establish an operating margin.
Compare partial and full hedging
The sensitivity table includes 0%, 25%, 50%, 75%, 100% and your selected share.
It holds the quote, fixed fee and unit fees constant to show arithmetic changes.
It does not rescale collateral to other shares; obtain and enter an actual quote for a different ratio.
The receipt target is met but cash runs short
Take the dated ledger to the bank and review collateral release against wage and supplier payments.
Additional calls or uncertain cash availability can require more funding than this schedule shows.
The calculated gap covers only these inputs, not working capital for the entire business.
Scope, assumptions and limitations
- Only one confirmed receivable and a simple deliverable sell-forward are supported.
Split receipts, options, structured products, NDFs, exchange-traded currency futures, leverage and speculation are excluded.
- Delay, cancellation and early close-out costs remain N/A.
Without a new bank quote, do not assume those costs are zero or the forward disappears when the export contract changes.
- Collateral interest, funding interest, additional calls, interim valuation losses, taxes and hedge-accounting eligibility are excluded.
Collateral terms come from the individual contract, not a universal statutory percentage.
- Dates use calendar days with no holiday, value-date or banking-cutoff adjustment.
Confirm whether cash is actually available before same-day payments.
- Cash displays use up to two decimals and rates up to six.
Budget comparisons use exact supported inputs before display rounding; ratio and FX boundaries are approximate divisions to check against bank increments.
Displayed figures can differ from actual bank rounding.
Frequently asked questions
Does a forward always receive more KRW?
No.
The fixed rate can help when FX falls but lose upside when it rises.
Review the comparison crossing after fees.
How are 0% and 100% hedges handled?
0% converts everything at spot, without forward fixed fees or collateral.
100% uses the quoted rate for everything; spot scenarios do not change receipts, which are compared directly with the target.
Why is collateral not a fee?
Normally returned principal is restricted cash rather than an expense.
The ledger and locked-collateral output separate it from receipt costs.
Can maturity differ from receipt?
This model supports matching dates only.
A mismatch may involve funding, extensions, swaps or close-out terms; request a matching quote or separate review.
Is the minimum share a recommendation or limit?
It is an arithmetic interval meeting your target, without credit approval, trading limits or suitability analysis.
Fixed fees can separate 0% from feasible positive shares.
Can I keep the sample rates and fees?
The sample checks the calculation and is not a current quote or bank average.
Replace it with your terms and avoid counting embedded spread twice.
Does the order within one day matter?
Payment before receipt can increase peak funding without changing closing cash.
Same-day collateral follows payments; verify actual bank availability.
What if payment is late or cancelled?
Do not reuse the original comparison.
Forward obligations can remain; extension and close-out costs are N/A until the bank provides new terms.
Sources, verification date and next step
Model year: 2026; sources checked October 8, 2026 (2026-10-08).
A future receipt date does not establish a future quote or 2027 product terms.
The Korean Financial Investment Services and Capital Markets Act, Article 5(1)(1) and 5(3), was checked through the National Law Information OPEN API: current MST 288615, effective 2026-10-02.
Its future-delivery and OTC definitions explain the instrument; they do not set fees, collateral or eligibility in this calculator.
Take the worksheet to your bank
Confirm matching currency, amount and maturity; separate fees; collateral and its release; and receipt/payment order.
Save the TXT and discuss receipt shortfalls and peak funding, including delay, cancellation and close-out terms.
The remittance calculator can help with spot receipt costs, while cash-runway planning can help review wider business liquidity.