Bond Yield to Maturity Calculator
This calculator finds a bond's yield to maturity (YTM): the single annual rate t
This calculator finds a bond's yield to maturity (YTM): the single annual rate t
How to use Bond Yield to Maturity Calculator
- Enter the bond's face value, current market price, annual coupon rate, and years remaining to maturity.
- Select how many coupon payments the bond makes per year (semi-annual is typical).
- Read the annual yield to maturity, plus effective annual yield and current yield, which update instantly.
About Bond Yield to Maturity Calculator
This calculator finds a bond's yield to maturity (YTM): the single annual rate that makes the present value of all future coupon payments plus the face value equal to the bond's current price. Because YTM cannot be isolated algebraically, the tool solves for it numerically using bisection, converging on the periodic yield and then annualizing it by your chosen coupon frequency.
Along with the annual (bond-equivalent) YTM, it also shows the effective annual yield, which compounds the periodic yield across the year, and the current yield, which is simply annual coupon income divided by price and ignores any gain or loss at maturity. A bond priced below par returns a YTM above its coupon rate; a bond priced at a premium returns a YTM below its coupon rate.
YTM assumes you hold the bond until maturity and reinvest every coupon at that same yield, which is a standard simplification rather than a guarantee. The calculator ignores taxes, transaction costs, accrued interest between coupon dates, and any call features. Everything runs entirely in your browser, so the numbers you enter never leave your device.
Frequently asked questions
- What is yield to maturity (YTM)?
- YTM is the total annualized return you would earn if you buy a bond at its current price and hold it to maturity, receiving every coupon and the face value at the end. It is the discount rate that sets the bond's present value equal to its price, so it accounts for both coupon income and any capital gain or loss.
- How is YTM different from the coupon rate and current yield?
- The coupon rate is fixed interest on face value. Current yield is annual coupon divided by the current price. YTM goes further by also factoring in the gain or loss between price and face value over the remaining life of the bond, which is why it differs from both when a bond trades at a discount or premium.
- How accurate is this calculator?
- It solves for the yield numerically to a very tight tolerance, so the annual YTM is accurate to about three decimal places for standard fixed-coupon bonds. It does not model accrued interest between coupon dates, call provisions, taxes, or fees, so results are a clean theoretical yield rather than a broker quote.
- Which coupon frequency should I choose?
- Match it to how often the bond pays. Most US corporate and Treasury bonds pay semi-annually, so 2 is the common default. Choose annual, quarterly, or monthly if that matches the bond's schedule; the frequency affects both the coupon-per-period amount and how the yield is annualized.
- Why is the YTM higher than the coupon rate on my bond?
- That happens when the bond trades at a discount, meaning its price is below face value. You collect the face value at maturity, which is more than you paid, and that extra gain lifts the total return above the coupon rate. A premium bond (price above par) works in reverse and has a YTM below its coupon.
- Is my data private?
- Yes. The calculator runs entirely in your browser with plain JavaScript. No values are uploaded, stored, or sent anywhere, and there is no sign-up or tracking of the numbers you enter.