Compute nominal, current and approximate yield to maturity of a bond.
Please do not make financial decisions based on these results.
What is the Bond Yield Calculator?
Compute nominal, current and approximate yield to maturity of a bond. To use the Bond Yield Calculator, enter face value, coupon rate, price, years to maturity; it returns approximate ytm, current yield, coupon rate, and shows them instantly as you type.
Pricing bonds and testing credit
Price a bond with the Bond Price Calculator, solve for yield with the Bond YTM Calculator and measure rate risk with convexity and duration. If the bond is callable, compare yield to maturity with the yield to call.
On the credit side, combine Debt to Equity Calculator, interest coverage and the Altman Z-score. Together they show leverage, ability to pay and the odds of distress.
- Yields. Current yield, YTM, yield to call and bond-equivalent yield answer different questions.
- Coverage. DSCR, times interest earned and cash flow to debt show repayment capacity.
- Loss. LGD and credit spread translate risk into expected loss and extra yield.
How to use the Bond Yield Calculator
- Fill in the fields. You will need Face value ($), Coupon rate (%), Price ($), Years to maturity. Take the price, coupon and maturity from the bond’s listing. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Approximate YTM, and the cards below show Current yield, Coupon rate. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Bond Yield Calculator using the default values shown in the calculator above:
Inputs
| Face value ($) | 1,000 |
|---|---|
| Coupon rate (%) | 5 |
| Price ($) | 960 |
| Years to maturity | 8 |
Results
| Approximate YTM | 5.61% |
|---|---|
| Current yield | 5.21% |
| Coupon rate | 5% |
With these inputs the calculator returns Approximate YTM: 5.61%. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Face value ($) from 1,000 to 1,200 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Approximate YTM | 5.61% | 8.33% | +48.5% |
| Current yield | 5.21% | 6.25% | +20% |
| Coupon rate | 5% | 5% | 0% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Bond Yield Calculator reports Approximate YTM, current yield and coupon rate. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
Which yield should I compare?
Yield to maturity, since it counts coupons and the pull to par.
How are bond prices calculated?
The price is the present value of every coupon plus the face value, discounted at the market yield.
What do solvency ratios tell me?
Ratios such as debt to equity, interest coverage and the Altman Z-score show how safely a company can meet its debts.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
Related bonds & credit ratios calculators
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- Bond Price Calculator
- Bond YTM Calculator
- Bond Equivalent Yield Calculator
- Yield to Call Calculator
- Tax Equivalent Yield Calculator
- Yield to Maturity Calculator
- Bond Convexity Calculator
- Effective Duration Calculator
- Credit Spread Calculator
- Coupon Payment Calculator
- After-tax Cost of Debt Calculator
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