Bond Yield Calculator
Yield to maturity and current yield from price, or price from a yield.
About this tool
Enter the face value, the coupon rate, the years to maturity and how often coupons are paid. Then give either the market price, to find the yield, or a required yield, to find the price. The calculator shows the yield to maturity and its effective annual equivalent, the price as a percentage of face value, the current yield and the coupon income per year and per payment.
How bond yields work
A bond pays a fixed coupon and returns its face value at maturity. A 1,000 bond with a 5% coupon pays 50 a year, here in two payments of 25. The yield to maturity is the single interest rate that makes the present value of all the remaining coupons and the final repayment equal to today's price. Buy this 8-year bond at 950 and the YTM is about 5.79%, higher than the coupon because you also gain 50 when it is repaid at par. The current yield, the annual coupon divided by the price, is 5.26% and ignores that gain. Prices and yields move in opposite directions. If market rates rise to 6%, the same bond is worth only about 937, a discount, while a bond yielding less than its coupon trades above par, at a premium. Honest limits: the calculation values the bond on a coupon date, while quoted clean prices between dates leave out accrued interest. It also assumes every payment is made with no default and that coupons are reinvested at the YTM. Not financial advice. The TVM calculator, the IRR calculator and the compound interest calculator use the same discounting maths. Compound interest, explained with real numbers covers the basics.
Frequently asked questions
What is yield to maturity?
The annual return you earn if you buy the bond at today's price and hold it to maturity, receiving every coupon and the face value.
Why do bond prices fall when interest rates rise?
Existing bonds pay fixed coupons, so when new bonds pay more, older ones must sell at a lower price to offer the same yield.
What is the difference between current yield and YTM?
Current yield is coupon รท price. YTM also counts the gain or loss between the price and the face value at maturity.
Is my data saved?
No. The calculation runs in your browser and nothing is stored or sent.