Yield to Maturity Calculator
Enter a bond's face value, coupon rate, current price, and years to maturity to calculate its yield to maturity (YTM) instantly.
Use the Yield to Maturity Calculator
Bond Parameters
Assumes fixed coupons, repayment at par, no default, taxes or transaction costs, and reinvestment of coupons at the calculated yield.
Yield to Maturity
Annual bond equivalent yield
Current Yield
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Annual Coupon Payment
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Price vs. Par
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Total Return (hold to maturity)
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Calculation breakdown
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Summary
The Yield to Maturity Calculator solves for the annualized internal rate of return on a fixed-income bond using a numerical bisection algorithm. Given the bond's face value, annual coupon rate, market price, years to maturity, and payment frequency, it equates current price to discounted cash flows to determine bond-equivalent yield and current yield. The calculation assumes that all coupon payments are reinvested at the computed rate and that the bond is held until maturity without default.
How it works
- Enter the bond's face value (par value), typically $1,000.
- Enter the annual coupon rate as a percentage (e.g., 5 for 5%).
- Enter the bond's current market price.
- Enter the number of years remaining to maturity.
- Optionally choose semi-annual or annual coupon payments.
- The tool solves the bond-pricing equation numerically and shows the calculation breakdown.
Use cases
- Compare yields across bonds with different coupon rates and prices.
- Determine whether a bond is fairly priced relative to a target return.
- Evaluate corporate bond offerings against benchmark Treasury yields.
- Academic fixed-income coursework and CFA exam practice.
- Assess reinvestment risk when comparing YTM to current yield.
- Screen bond ladders for consistent after-tax return targets.