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Bond Yield Calculator

Calculate a bond's simple yield to maturity, current yield, and redemption gain or loss from its face value, coupon rate, purchase price, and years to maturity.

Input

$
%
$
yrs

Enter the face value in the bond's quoted price unit (typically 100). Enter the purchase price in the same unit as the face value.

Result

Simple yield to maturity

1.939%

Current yield

1.531 %

Annual coupon

$1.50

Redemption gain/loss

+$2.00

How it works

  • Current yield is calculated as coupon rate × face value ÷ purchase price × 100. It shows how much interest you receive each year relative to your invested principal (the purchase price).
  • Simple yield to maturity is calculated as (annual coupon interest + (face value − purchase price) ÷ years to maturity) ÷ purchase price × 100. It blends the coupon income with the redemption gain or loss spread evenly over each year.
  • The annual coupon is found by multiplying face value × coupon rate. Note that the coupon rate is a rate applied to the face value.
  • The redemption gain or loss equals face value − purchase price. Buying below face value yields a gain, buying above it yields a loss, and either way it affects the yield to maturity.
  • Enter the face value and purchase price in the same unit (typically the price per 100 of face value). Years to maturity is the time until redemption; for an early sale, substitute the years until you sell to get an estimate.
  • This tool gives an approximation using simple interest and does not account for compound yield, accrued interest, taxes, or fees. Check your broker's quoted figures and trade terms for the actual yield. Investment decisions are your own responsibility.