A bond yield calculator for yield to maturity, price and accrued interest
A bond’s coupon tells you the interest it pays; its yield tells you what you actually earn at the price you pay. This bond yield calculator works out the yield to maturity (YTM) from a bond’s clean price — or the price from a yield — together with the current yield, accrued interest, the dirty price you actually pay, the effective annual yield and the bond’s duration. It handles coupons paid yearly, half-yearly, quarterly or monthly, zero-coupon bonds, and the three common day-count conventions.
It suits Indian government securities, state development loans, corporate bonds and NCDs, US Treasuries and corporates, or any fixed-coupon bond: enter the face value, coupon, settlement and maturity dates and the price, and the answer appears with the full cash-flow schedule and a table of how the price would move if yields rose or fell.
How to use the Bond Yield & YTM Calculator
- Choose Yield from price or Price from yield, and your currency.
- Enter the face value of one bond, the yearly coupon rate and how often coupons are paid.
- Enter the settlement date (when you buy) and the maturity date — or switch to Years left for a quick estimate.
- Choose the day count: 30/360 for Indian G-secs and most corporates, Actual/Actual for US Treasuries.
- Enter the clean (quoted) price, or the yield, and read the results and cash-flow schedule.
Bond Yield & YTM Calculator features
YTM and price both ways
Solve the yield from the price with Newton’s method, or price the bond at any yield.
Accrued interest and dirty price
From the last coupon date to settlement under 30/360, Actual/Actual or Actual/365.
Current and effective yield
Coupon ÷ price, and the yield compounded over a year.
Duration and rate sensitivity
Macaulay and modified duration, the price change for a 0.01% move, and a ±1% price table.
Cash-flow schedule
Every coupon date, cash flow, discount factor and present value.
Bond yield formulas
Per 100 of face value, with coupon c per period, N coupons left, f coupons a year and w the fraction of a period until the next coupon, the clean price at yield y is P = Σ c ÷ (1 + y/f)^(k − 1 + w) + 100 ÷ (1 + y/f)^(N − 1 + w) − accrued, where accrued interest = c × days since the last coupon ÷ days in the period. YTM is the y that makes this equal the market price. This is the standard street convention used by spreadsheet PRICE and YIELD functions, and the calculator reproduces their documented examples: a 5.75% bond settled on 15 February 2008 and maturing 15 November 2017 is worth 94.63436 at a 6.5% yield, with 1.4375 of accrued interest.
Current yield = annual coupon ÷ clean price. Effective annual yield = (1 + y/f)^f − 1. Macaulay duration is the present-value-weighted average time to the cash flows; modified duration = Macaulay ÷ (1 + y/f) and gives the approximate percentage price fall for a one-point rise in yield.
Worked example
A 7.18% bond with ₹1,000 face value, half-yearly coupons, maturing on 14 August 2033 and bought on 19 October 2026 at a clean price of ₹1,012.50 has a YTM a little below its coupon, because you pay a premium that you do not get back at maturity. You also pay about ₹13 of accrued interest to the seller — the share of the next coupon earned since 14 August. If yields rise by one percentage point, the price falls by roughly the modified duration in per cent.
For a fixed deposit instead, compare with the FD calculator; for gold bonds, the SGB calculator; and for irregular cash flows, the XIRR calculator.
Limits
- YTM assumes coupons are reinvested at the same yield and the bond is held to maturity without default.
- Callable, puttable, floating-rate, inflation-indexed and amortising bonds need their own models; this calculator treats every bond as a plain fixed-coupon bullet.
- Coupon dates are counted back from the maturity date; month-end maturities keep month-end coupons. Holiday adjustments and ex-interest (record date) periods are not modelled.
Bond Yield & YTM Calculator FAQ
How do you calculate yield to maturity?
Find the yield at which the present value of all remaining coupons and the redemption amount equals the bond’s price. There is no closed formula, so the bond yield calculator solves it numerically.
What is the difference between coupon rate, current yield and YTM?
The coupon rate is fixed interest on face value; current yield is the coupon divided by today’s price; YTM also counts the gain or loss from the price to face value at maturity and the timing of every payment.
How is accrued interest on a bond calculated?
Coupon per period × days since the last coupon ÷ days in the coupon period, under the bond’s day-count convention. The buyer pays it to the seller on top of the clean price.
Which day count do Indian G-secs use?
Government securities in India pay half-yearly coupons and use the 30/360 convention. US Treasuries use Actual/Actual.
Why does a bond price fall when yields rise?
Its coupons are fixed, so when new bonds pay more, existing ones must become cheaper to offer the same yield. Modified duration estimates the size of the fall.
Is this investment advice?
No — calculations only. Bond prices can fall and issuers can default; check credit ratings and the offer document.