The method
How it is worked out
YTM solves price = Σ coupon ÷ (1 + y/f)^k + face ÷ (1 + y/f)^n
- current yield
- Annual coupon ÷ price; ignores the pull to par
- duration
- Price sensitivity; roughly the % move for a 1% yield change
Bond Yield Calculator
Get current yield and yield to maturity for a bond from its price, coupon and years left, and see how a rate move changes its price. The result updates as you type so you can compare scenarios quickly.
Keep in mind
What it leaves out
- Default riskYield is not return if the issuer fails.
- TaxCoupons and gains may be taxed differently.
- Accrued interestPrices quoted clean exclude interest earned since the last coupon.
Use the calculator to compare scenarios rather than as a guaranteed forecast.
About the Bond Yield Calculator
Get current yield and yield to maturity from a bond's price, coupon and years left, and test how a rate move changes its price.
How it works and an example to tryShow less
How to use the result
Yield to maturity is solved so the discounted coupons and face equal the price. Current yield is annual coupon over price. The rate-move test reprices at a shifted yield.
Example to try
A £1,000 bond at £940 with a 4% semi-annual coupon and seven years left yields 4.26% currently and 5.0% to maturity. A 1% rise in yields drops the price to about £886.
Put it to work
Try it on a real situation
Load an example
What moves the result most
Worked out from your figures above. Tap a row to try it.
Who uses it, and when
Savers comparing gilts or bonds with savings rates, and investors building a ladder.
Mistakes worth avoiding
- Reading the coupon as the return.
- Forgetting the gain or loss at maturity.
- Ignoring rate risk if you may sell before maturity.
Questions
What does the Bond Yield Calculator do?
Get current yield and yield to maturity for a bond from its price, coupon and years left, and see how a rate move changes its price.
How should I use the result?
Yield to maturity is solved so the discounted coupons and face equal the price. Current yield is annual coupon over price. The rate-move test reprices at a shifted yield.
Does TechBullion store the information I enter?
The core calculation or transformation runs in your browser. Normal website security and analytics may still record page-level events, but the tool does not need to create a public record from your inputs.
What mistakes do people make with a bond yield calculator?
Reading the coupon as the return. Forgetting the gain or loss at maturity. Ignoring rate risk if you may sell before maturity.
Is the result guaranteed?
No. Use the result as a practical check or planning aid and verify important decisions with the relevant primary source, provider or professional advice.
Executive Insights
Leaders on this topic
Executive insightCap Founder Benjamin Sarquis Peillard on Stablecoin Yield, Onchain Private Credit and Financing the AI Infrastructure BoomExecutive insightShane Morand on AI Avatars: Why MLM Leaders Keep Paying for AI and Getting Nothing BackExecutive insightHow Businesses Can Approach AI Security Without the Technical Jargon: Interview With Simon Heath of The Final Step
Results are estimates based on the figures entered, for general information only, and not financial, investment, tax or legal advice. See our terms of use.