Calculators
Bond Yield to Maturity Calculator
Calculate a bond's yield to maturity, current yield and the approximate YTM from price, coupon, face value and years to maturity.
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The tool
Enter your numbers below. Results update as you type, and nothing leaves your browser.
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What people use it for
- Comparing bonds with different prices and coupons
- Checking a broker's quoted yield
- Fixed income coursework
- Choosing between a bond and a savings account
About this tool
What the Bond Yield to Maturity Calculator does
Yield to maturity (YTM) is the annual return you earn if you buy a bond at today’s price, hold it to maturity and receive every coupon. It is the discount rate that makes the present value of the coupons and face value equal the price. Bonds bought below face value yield more than their coupon.
Formula
- Price = Σ coupon ÷ (1 + y)^t + face ÷ (1 + y)^n, solved for y
- YTM = y × coupons per year
- Current yield = annual coupon ÷ price
- Approximate YTM = (coupon + (face − price) ÷ years) ÷ ((face + price) ÷ 2)
Worked example
Using the starting values in the calculator above:
| Input | Value |
|---|---|
| Face value | $1,000 |
| Price | $950 |
| Annual coupon rate | 5% |
| Years to maturity | 8 |
| Coupons per year | Semi-annual |
| Result | Value |
|---|---|
| Yield to maturity | 5.79% |
| Current yield | 5.26% |
| Approximate YTM (shortcut formula) | 5.77% |
| Annual coupon income | $50.00 |
How to read the result
YTM is quoted as an annual rate equal to the periodic yield times the number of coupons, the bond-equivalent convention.
YTM assumes coupons are reinvested at the same yield and the issuer does not default or call the bond early.
For education only, not investment advice. Past returns do not guarantee future results.
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Questions
Questions about this tool
The things clients actually want to know — costs, timelines, ownership and what happens after launch.
The total annual return from buying a bond at its current price and holding it until it matures.
You pay less for the same coupons and face value, so the return on your money is higher.
Current yield counts only the coupon income. YTM also includes the gain or loss as the price moves to face value at maturity.
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