Bond Yield Calculator
Calculate the current yield and approximate yield to maturity (YTM) of any bond.
Educational Purpose Only: YTM shown is an approximation. Actual YTM requires iterative calculation and may differ slightly.
How it works
A bond pays regular interest (the coupon) based on its face value and coupon rate. However, bonds trade in the secondary market at prices that may differ from their face value. The current yield simply divides the annual coupon by the market price to show your income return. The yield to maturity (YTM) goes further — it also accounts for any capital gain or loss you will receive if you hold the bond until it matures and gets redeemed at face value.
When a bond trades below its face value (at a discount), the YTM is higher than the current yield because you gain the difference between the purchase price and the face value at maturity. When it trades at a premium, the YTM is lower.
This calculator uses an approximation formula for YTM. The exact YTM requires iterative calculation and may differ slightly. Results are for educational purposes only and should not be taken as investment advice.