Bond Yield to Maturity Calculator

Yield to maturity is the single annual rate that makes a bond's future coupons and face value, once discounted, add up to its current price. It is the total return you earn if you buy at that price and hold to maturity, assuming coupons are reinvested at the same rate.

Current yield is just the annual coupon divided by the price, so it only measures income. Yield to maturity also includes the capital gain or loss from buying below or above face value, which is why a discount bond's YTM is higher than its current yield and a premium bond's is lower.

When you pay less than face value you collect the coupon and also pocket the difference between your price and the face value repaid at maturity. That extra capital gain lifts the yield to maturity above the stated coupon rate.

There is no closed-form solution, so the calculator uses bisection: it repeatedly prices the bond at a trial yield and narrows a 0 to 100 percent range until the computed price matches the price you entered, to well within a cent.

Yes. Choose annual or semiannual coupons. With semiannual coupons each period pays half the annual coupon and is discounted at half the periodic yield, and the result is reported as an annualized rate.

No. The calculation runs entirely in your browser. Nothing you type is sent to a server, logged or stored.