Bond yield to maturity (YTM) calculator
Yield to maturity is the discount rate that makes the present value of the coupons and face value equal to today's bond price.
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How to use it
- Enter current bond price, face value, annual coupon rate, years to maturity and coupon frequency.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
Solve price = C × (1 - (1 + i)^-N) ÷ i + F ÷ (1 + i)^N numerically for i, then YTM = i × m. Current yield = annual coupon ÷ price × 100. Effective yield = (1 + i)^m - 1.
Example
Inputs: Current bond price = 950, Face value = 1,000, Annual coupon rate = 5 %, Years to maturity = 10 years, Coupon frequency = Semiannually (2 per year). Result: Yield to maturity (YTM): 5.662%; Current yield: 5.263%; Effective annual yield: 5.742%.
Limits and caveats
- It assumes you hold to maturity and reinvest coupons at the same yield.
- It works on a coupon date without accrued interest and does not handle callable bonds.
Questions about this tool
What is the difference between current yield and YTM?
Current yield only divides the annual coupon by the price. YTM also counts the gain or loss between your price and the face value at maturity.
Why is the effective yield different from YTM?
The YTM shown is the standard nominal figure (period rate × periods per year). The effective yield adds compounding of coupons within the year.
How is it calculated?
YTM has no direct formula, so the calculator narrows in on the rate by bisection until the computed price matches yours very closely.