Bond Yield Calculator
Calculate a bond current yield and estimated yield to maturity from its face value, coupon rate, price, and term. Free and private.
Independently verified for accuracy
Calculator by Toolsloft ↗- Annual coupon
- $50
- Current yield
- 5.26%
- Yield to maturity (estimate)
- 5.64%
Work out what a bond actually pays you at its current market price. Enter the face value, coupon rate, price, and years to maturity to see the current yield and an estimated yield to maturity. Useful when a bond trades above or below par and the coupon rate no longer tells the whole story.
How this is calculated
Current yield is the annual coupon divided by the market price. Yield to maturity uses the standard approximation formula, [coupon + (face - price) / years] divided by the average of face and price, which folds the capital gain or loss to maturity into the return.
How to use
- Enter the bond face value and its annual coupon rate.
- Enter the current market price and the years left to maturity.
- Read the current yield and the estimated yield to maturity.
Examples
- $1,000 face, 5% coupon, $950 price, 10 yr:
Current 5.26%, YTM 5.64% - $1,000 face, 6% coupon, $1,050 price, 8 yr:
Current 5.71%, YTM 5.24%
FAQ
- What is the difference between current yield and yield to maturity?
- Current yield only looks at the coupon against today price. Yield to maturity also counts the gain or loss you lock in by holding the bond to par, so it is the fuller measure of return.
- Is the yield to maturity exact?
- It is the widely used approximation, accurate to a few hundredths of a percent for most bonds. A precise YTM requires solving for the rate that discounts every cash flow to the price, which this estimate stands in for.
- Why is yield higher than the coupon when a bond trades below par?
- Buying below face value means you also collect the difference at maturity. That capital gain lifts the total return above the stated coupon rate.