Bond Yield to Maturity Calculator
Find the annual return you’d earn buying a bond at a given price and holding it to maturity.
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Yield to maturity
- Current yield
- Coupon payment
- Duration
- Premium or discount
- Total coupons
- Effective annual yield
- Quick approximation
- Work
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How Yield to Maturity Works
YTM is the interest rate that makes the bond’s future cash flows worth exactly its price today. There’s no closed-form formula, so it’s solved numerically (like Excel’s YIELD or RATE).
Price = Σ C ÷ (1 + y/m)ᵏ + F ÷ (1 + y/m)ᴺ, solved for y
Approximation: (annual coupon + (F − P) ÷ years) ÷ ((F + P) ÷ 2)
Worked Example
Tips
YTM assumes you hold to maturity, every payment is made, and coupons are reinvested at the same yield. For callable bonds, also check yield to call.