AI Calculator Tool

Free Online Bond Yield Calculator

Enter the bond’s market price, face value, coupon rate, how often it pays interest, and years until maturity. You see current yield (income ÷ price) and an estimated yield to maturity.

Try an example
965
1000
4.2
3

Current yield vs yield to maturity

Current yield is annual coupon income divided by today’s price. It ignores gain or loss if you hold to maturity.

Yield to maturity (YTM) estimates the total annualized return if you hold the bond until maturity, including coupons and the difference between purchase price and par.

When price is below par, YTM is usually above the coupon rate; when price is above par, YTM is usually below the coupon rate.

How to use this calculator

  1. Enter the bond’s current market price.
  2. Enter par (face) value—often $1,000 for US corporates and Treasuries.
  3. Set the annual coupon rate and how often coupons are paid.
  4. Enter years remaining until maturity.
  5. Read current yield and estimated YTM in the results.

Worked examples

Sample numbers you can try in the calculator above. Your lender's quote may differ slightly.

  • Discount bond

    Buying below par boosts total return at maturity.

    Price $965 · par $1,000 · 4.2% coupon · semi-annual · 3 years

    YTM: Current yield ~4.35% · YTM higher than coupon

  • At par

    When price equals par, yield is close to the stated coupon.

    Price $1,000 · 5% coupon · annual · 10 years

    YTM: Current yield and YTM near 5%

  • Premium bond

    You pay more than face value, which pulls YTM down.

    Price $1,050 · 4% coupon · semi-annual · 5 years

    YTM: YTM below coupon rate

  • Zero-coupon bond

    Select zero-coupon frequency; return comes entirely from par minus price.

    Price $850 · par $1,000 · no coupon · 5 years

    YTM: YTM from price appreciation only

Frequently asked questions about the bond Yield Calculator

  • What is yield to maturity?

    The annualized return if you hold the bond to maturity and reinvest coupons at the same rate—an approximation in this tool.

  • Price vs yield?

    Bond prices and yields move in opposite directions. When price falls, yield rises.

  • Coupon rate vs yield?

    Coupon is the stated interest on face value; yield reflects what you actually earn given the price you pay.

  • Callable bonds?

    This calculator assumes a fixed maturity. Callable bonds may be redeemed early, changing your realized return.