Finance tools
Yield to maturity calculator
Free yield to maturity calculator, bond yield to maturity calculator, and bond yield calculator for fixed-income homework and portfolio checks. Learn how to calculate yield to maturity with live inputs: face value, current bond price, coupon rate, years to maturity, and coupon frequency (annual, semi-annual, quarterly, monthly, or zero coupon). See exact YTM, approximate YTM, and current yield — plus a cash-flow schedule and CSV/PDF export. Illustrative estimates only; not investment advice.
What is yield to maturity (YTM)?
Yield to maturity (YTM) is the total annualized return you would earn if you buy a bond at today’s market price, hold it until maturity, receive every coupon payment on schedule, and recover the face value at the end. It is the bond’s internal rate of return (IRR) under those assumptions.
YTM accounts for both coupon income and any capital gain or loss between purchase price and par. It is the standard metric for comparing bonds that trade at a discount or premium to face value. Use our WACC calculator for company discount rates; YTM is for individual bond cash flows.
Exact YTM solver
Iterative IRR on coupon + principal cash flows — matches textbook bond math.
Approximate YTM
Shortcut formula side-by-side with exact YTM for homework and quick checks.
Current yield
Annual coupon divided by price — useful but not the same as YTM.
CSV/PDF export
Download inputs, yields, and schedule rows — no account required.
Bond yield calculator
A bond yield calculator estimates how much return a fixed-coupon bond offers from its cash flows. This page focuses on yield to maturity (YTM) — the hold-to-maturity IRR — and also shows current yield so you can compare coupon income alone versus total return.
For savings-style government bonds, see our savings bond calculator. For deposit APY (not bond IRR), try the APY calculator.
Yield to maturity formula
Exact YTM solves the bond price equation — the market price equals the present value of all future cash flows:
Bond price equation
Price = Σ Coupon ÷ (1 + y)t + Face ÷ (1 + y)nWhere y is the yield per coupon period and n is the number of periods. Annualized YTM uses the US convention: multiply y by periods per year.
Approximate YTM (shortcut):
(Annual coupon + (Face − Price) ÷ Years) ÷ ((Face + Price) ÷ 2)Worked example (annual): $980 price, $1,000 face, 5% coupon, 10 years → exact YTM ≈ 5.26%, approximate ≈ 5.25%.
For zero-coupon bonds: YTM = (Face ÷ Price)1÷Years − 1. See the semi-annual YTM section below for US corporate bond conventions.
Semi-annual YTM and coupon frequency
Most US corporate bonds pay coupons semi-annually (twice per year). The calculator solves for the periodic yield y per half-year, then annualizes: YTM = y × 2. Coupon per period = Face × coupon rate ÷ 2.
Worked example (semi-annual): $920 price, $1,000 face, 10% annual coupon, 10 years, paid semi-annually → exact YTM ≈ 11.36%; the approximate shortcut ≈ 11.25%. Load the Semi-annual example ($920) preset to reproduce these numbers.
Match compounding in Excel’s YIELD function: use frequency = 2 for semi-annual bonds. Quarterly and monthly frequencies follow the same pattern — periodic yield × periods per year.
YTM vs current yield
Current yield = annual coupon ÷ current price. It ignores capital gain or loss at maturity and time value of money. YTM includes both coupon income and the pull toward (or away from) face value. Our calculator labels current yield beside exact YTM so you can compare coupon income alone versus total return — a common need for current yield calculator searches.
A bond trading at a discount usually has YTM above its coupon rate; at a premium, YTM is typically below the coupon rate. See also our simple interest calculator for linear interest-only math (not bond IRR).
Zero-coupon bonds
Zero-coupon bonds pay no periodic coupons — you receive only the face value at maturity. Select None (zero coupon) in the calculator. Example: $600 price, $1,000 face, 3 years → YTM ≈ 18.56%.
Current yield is not defined for zero-coupon bonds (no annual coupon stream).
Bond price vs YTM
This tool solves for YTM given price. If you know YTM and need fair bond price, that is the inverse problem — a bond price calculator (future Ordio tool). We focus on YTM-first UX because most retail searches start from a quoted market price.
Related: CAGR calculator for annualized growth; compound interest calculator for deposit growth; amortization schedule calculator for loan payment schedules (not bond IRR).
How to use this calculator
Enter bond inputs
Type face value (par), current bond price, annual coupon rate, coupon frequency (semi-annual is common for US corporates), and years to maturity. Use a preset scenario chip for quick benchmarks.
Read exact, approximate, and current yield
Review exact YTM (IRR), approximate YTM shortcut, and current yield on coupon bonds. Premium and discount bonds show whether YTM is above or below the coupon rate.
Inspect cash flows and export
Open the cash-flow schedule for period-by-period coupons and principal, then download CSV or PDF when you need spreadsheet-ready rows.
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Frequently asked questions about this yield to maturity calculator
How do you calculate yield to maturity?
Find the periodic rate y that makes the present value of all coupon payments plus face value equal to the bond’s current price. Annualized YTM = y × periods per year. Use the calculator above — exact YTM uses iterative root-finding; the approximate formula is shown for quick estimates.
What is yield to maturity on a bond?
YTM is the annualized return if you hold the bond to maturity, receive all coupons on time, and reinvest at the same rate. It is the bond’s IRR from purchase to redemption.
What does 12% YTM mean?
A 12% YTM means the bond’s cash flows (coupons + return of principal) equate to about a 12% annualized return on your purchase price under hold-to-maturity assumptions. Actual realized return can differ if you sell early, coupons are reinvested at different rates, or the issuer defaults.
Is YTM the same as current yield?
No. Current yield = annual coupon ÷ price. YTM also includes capital gain or loss at maturity and the timing of coupons. They match only in special cases (e.g., price near par with short maturity).
How do you calculate YTM for a zero-coupon bond?
YTM = (Face ÷ Price)1÷Years − 1. Select None (zero coupon) in the calculator. Example: $600 → $1,000 in 3 years ≈ 18.56% YTM.
Premium vs discount — YTM vs coupon rate?
At a discount (price < face), YTM is usually higher than the coupon rate because you also gain toward par. At a premium (price > face), YTM is usually lower than the coupon rate.
What is the difference between YTM and coupon rate?
The coupon rate is the stated annual interest on face value. YTM is your total annualized return based on what you actually paid. They differ when the bond trades away from par.
How do you calculate YTM in Excel?
Use YIELD (settlement, maturity, rate, price, redemption, frequency) or RATE on cash flows. Match frequency to your bond (2 for semi-annual). This calculator mirrors those inputs without a spreadsheet.
Can you use YTM for mutual funds?
Not directly. Mutual fund and ETF “yield” figures often reflect portfolio income or SEC yield — not a single bond’s IRR to a fixed maturity date. Use this tool for individual fixed-coupon bonds with a known maturity.
What is a bond yield calculator?
A bond yield calculator estimates return from a bond’s coupons and redemption value. This tool computes yield to maturity (YTM) — the annualized IRR if you hold to maturity — plus current yield and an approximate YTM shortcut for quick checks.
Is a higher YTM always better?
Higher YTM usually means higher return if the issuer pays as promised. It often signals higher credit risk, longer maturity, or a deep discount for distressed debt. Compare YTM only among bonds with similar risk and structure.
Is yield to maturity a percentage?
Yes. YTM is expressed as an annualized percentage — the bond’s internal rate of return if you hold to maturity under the calculator’s assumptions. A 5.26% YTM means about 5.26% per year on your purchase price, not a dollar amount.
What is a good YTM for bonds?
There is no universal “good” YTM — it depends on credit quality, maturity, and market rates. Investment-grade corporates often trade near Treasury yields plus a spread; high-yield bonds show higher YTM because of default risk. Compare YTM to similar bonds and your required return, not to stock market averages.
How much is a $1,000 bond worth after 30 years?
At maturity, a standard bond pays back $1,000 face value (assuming no default). Along the way you receive coupons. If you buy below par, total cash flows can exceed $1,000; if you buy at a premium, coupons plus face value may still produce a positive return but with a lower YTM than the coupon rate. Use the calculator with your price, coupon, and 30-year horizon to see YTM and total coupon income.