Calculators
Treasury Bill Yield Calculator
Calculate a Treasury bill's discount yield, bond-equivalent yield and dollar return from face value, price and days to maturity.
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- Nothing uploaded
The tool
Enter your numbers below. Results update as you type, and nothing leaves your browser.
Everything you enter stays on your own machine. Nothing is sent to us or to anyone else, which you can confirm in your browser network tab.
What people use it for
- Comparing T-bills with savings accounts
- Understanding auction results
- Cash management for businesses
- Fixed income coursework
About this tool
What the Treasury Bill Yield Calculator does
Treasury bills pay no coupon. You buy them below face value and receive the full face value at maturity. The discount yield quoted at auction uses a 360-day year and the face value; the bond-equivalent (investment) yield uses a 365-day year and the price you paid, which makes it comparable with other investments.
It also works as a treasury bond T-bill yield calculator or a T-bill calculator.
Formula
- Discount yield = (face − price) ÷ face × 360 ÷ days
- Bond-equivalent yield = (face − price) ÷ price × 365 ÷ days
- Compounded yield = (face ÷ price)^(365 ÷ days) − 1
Worked example
Using the starting values in the calculator above:
| Input | Value |
|---|---|
| Face value | $1,000 |
| Purchase price | $988 |
| Days to maturity | 182 |
| Result | Value |
|---|---|
| Bond-equivalent yield | 2.54% |
| Discount yield | 2.47% |
| Compounded annual yield | 2.55% |
| Interest earned | $12.50 |
How to read the result
Compare T-bills with savings accounts using the compounded annual yield, which matches how APY is quoted.
T-bill interest is exempt from US state and local income tax, which can make the after-tax yield better than a similar bank rate.
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 discount yield divides the discount by face value and annualises it on a 360-day year; the investment yield divides by price and uses 365 days.
They use different conventions. The bond-equivalent yield is better for comparing with other investments.
Interest is subject to US federal income tax but exempt from state and local income tax.
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