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Bond yield calculator
What does a bond really pay? Enter the face value, coupon rate, price, maturity and call terms to see the current yield, the yield to maturity, the yield to call and the total return if you hold it to maturity.
★ MONEY · BONDS · YIELD TO MATURITY
Bond Yield Calculator 2026: YTM, Current Yield & YTC
YTM 5.66% — $50.00 a year on a $1,000 bond bought for $950.00. A 5.00% coupon bond at a discount pays more than its coupon rate: the current yield is 5.26% and the yield to maturity is 5.66%. Enter your numbers to see your yield.
The coupon is 5.00% — but the yield is 5.66%
A bond's coupon rate is what it pays on its face value. Its yield is what it pays on what you actually spent. Buy a $1,000 bond paying 5.00% for $950.00 and the coupon is still $50.00 a year — but $50.00 on $950.00 is a 5.26% current yield, and because you also pocket the $50.00 difference between the $950.00 you paid and the $1,000 you get back at maturity, the yield to maturity is 5.66%. On the defaults — face value $1,000, coupon rate 5.00%, price $950.00, 10 years to maturity, 2 payments a year, call price $1,050, 5 years to call — the annual coupon is $50.00, the current yield is 5.26% (exact 5.2632%), the YTM is 5.66% (exact 5.6617%) and the YTC is 7.06% (exact 7.0554%). The total coupons are $500.00, the capital gain is $50.00, the total return is $550.00 and the simple annualized return is 5.79% (exact 5.7895%).
| Scenario | YTM | Current yield | YTC | Total return |
|---|---|---|---|---|
| Default ($1,000 face, 5.00% coupon, $950.00 price, 10 yrs) | 5.66% | 5.26% | 7.06% | $550.00 |
| Price $1,000 | 5.00% | 5.00% | 5.87% | $500.00 |
| Price $1,100 | 3.79% | 4.55% | 3.71% | $400.00 |
| Price $800 | 7.93% | 6.25% | 11.09% | $700.00 |
| Coupon 3% | 3.60% | 3.16% | 5.04% | $350.00 |
| Coupon 8% | 8.76% | 8.42% | 10.09% | $850.00 |
| 5 years to maturity | 6.18% | 5.26% | 7.06% | $300.00 |
| 20 years to maturity | 5.41% | 5.26% | 7.06% | $1,050.00 |
| 1 year to maturity | 10.39% | 5.26% | 7.06% | $100.00 |
| Annual payments | 5.67% | 5.26% | 7.09% | $550.00 |
| Quarterly payments | 5.66% | 5.26% | 7.04% | $550.00 |
| Face value $2,000 | 15.49% | 10.53% | 12.12% | $2,050.00 |
| Call price $1,000, 3 years to call | 5.66% | 5.26% | 6.87% | $550.00 |
| Call price $1,100, 5 years to call | 5.66% | 5.26% | 7.90% | $550.00 |
| Call price $1,000, 5 years to call | 5.66% | 5.26% | 6.18% | $550.00 |
At the defaults — face value $1,000, coupon rate 5.00%, price $950.00, years to maturity 10, payments per year 2, call price $1,050, years to call 5 — the annual coupon is $50.00, the current yield is 5.26%, the YTM is 5.66%, the YTC is 7.06%, the total coupons are $500.00, the capital gain is $50.00, the total return is $550.00 and the simple annualized return is 5.79%. Check the identities: periodic coupon = face × coupon rate ÷ payments per year; price = Σ discounted coupons + face value discounted at the yield; annual coupon = face × coupon rate; current yield = annual coupon ÷ price × 100; total coupons = annual coupon × years; capital gain = face − price; total return = total coupons + capital gain; simple annualized = total return ÷ (price × years) × 100. Rounding convention: totals are computed from unrounded values, so rounded parts may differ by a cent from their rounded sum.
The worked example, line by line
Setup: face value $1,000, coupon rate 5.00%, price $950.00, years to maturity 10, payments per year 2, call price $1,050, years to call 5.
Line 1 — the coupon. $1,000 × 5.00% = $50.00 a year, paid as $25.00 every six months.
Line 2 — the current yield. $50.00 ÷ $950.00 × 100 = 5.26% (exact 5.2632%).
Line 3 — the yield to maturity. The yield that makes the present value of 20 half-yearly $25.00 coupons plus $1,000 at maturity equal $950.00 is 5.66% (exact 5.6617%). There is no closed-form formula for it — the calculator finds it by bisection, narrowing the yield until the present value matches the price.
Line 4 — the yield to call. The yield that makes 10 half-yearly $25.00 coupons plus the $1,050 call price at year 5 equal $950.00 is 7.06% (exact 7.0554%).
Line 5 — the total return. $50.00 a year for 10 years is $500.00 of coupons; $1,000 − $950.00 is $50.00 of capital gain; together $550.00, or 5.79% a year simple (exact 5.7895%).
Reverse: the price for a 6.00% YTM is $925.61 (exact 925.6126); at $925.61 the YTM is 6.0000%, at $925.62 it is 5.9999%. The coupon rate for a 6.00% current yield is 5.70%; at 5.70% the current yield is 6.0000%, at 5.69% it is 5.9895%. The face value for a $100.00 annual coupon is $2,000.00; at $2,000.00 the annual coupon is $100.00, at $1,999.00 it is $99.95. The price for a 5.00% current yield is $1,000.00; at $1,000.00 the current yield is 5.0000%, at $1,001.00 it is 4.9950%. The call price for a 6.00% YTC is $990.12 (exact 990.1236); at $989.12 the YTC is 5.9819%, at $991.12 it is 6.0180%. The coupon rate for a 6.00% YTM is 5.33% (exact 5.3278%); at 5.3178% the YTM is 5.9896%, at 5.3378% it is 6.0103%.
Every branch, checked
Price $1,000: YTM 5.00%, current yield 5.00%, total return $500.00. At par the yield equals the coupon rate exactly — there is no capital gain, so the whole return is the $500.00 of coupons.
Price $1,100: YTM 3.79% (exact 3.7893%), current yield 4.55% (exact 4.5455%), total return $400.00. At a premium the $50.00 coupon is only 4.55% on the money spent, and the $100.00 capital loss at maturity drags the YTM down to 3.79%.
Price $800: YTM 7.93% (exact 7.9348%), current yield 6.25%, total return $700.00. At a deep discount the same $50.00 coupon is 6.25% on the money spent, and the $200.00 capital gain lifts the YTM to 7.93%.
Coupon 3%: annual coupon $30.00, YTM 3.60% (exact 3.5998%), current yield 3.16% (exact 3.1579%), total return $350.00. A lower coupon means less income — $30.00 a year instead of $50.00 — and a lower yield even at the same $950.00 price.
Coupon 8%: annual coupon $80.00, YTM 8.76% (exact 8.7608%), current yield 8.42% (exact 8.4211%), total return $850.00. A higher coupon pays $80.00 a year and lifts the YTM to 8.76% — the coupon rate does most of the work in the yield.
5 years to maturity: YTM 6.18% (exact 6.1776%), total return $300.00. With only 5 years left, the $50.00 capital gain is spread over half the time, so the annualized yield rises to 6.18% even though the total return falls to $300.00.
20 years to maturity: YTM 5.41% (exact 5.4123%), total return $1,050.00. Over 20 years the coupons add up to $1,000.00 and the total return is $1,050.00 — but the $50.00 gain is spread thin, so the YTM eases to 5.41%.
1 year to maturity: YTM 10.39% (exact 10.3930%), total return $100.00. With one year left the $50.00 gain is earned in a single year, so the YTM jumps to 10.39% on a total return of only $100.00.
Annual payments: YTM 5.67% (exact 5.6687%). Paying the coupon once a year instead of twice changes the YTM by only 0.01 points — the payment frequency barely matters when the coupon is small.
Quarterly payments: YTM 5.66% (exact 5.6582%). Four payments a year instead of two moves the YTM by less than 0.01 points, to 5.66%.
Face value $2,000: annual coupon $100.00, YTM 15.49% (exact 15.4939%), current yield 10.53% (exact 10.5263%), total return $2,050.00. Doubling the face value while the price stays $950.00 means a $1,050.00 capital gain — the bond is a deep discount, and the YTM jumps to 15.49%.
Call price $1,000, 3 years to call: YTC 6.87% (exact 6.8728%). A lower call price and an earlier call date pull the yield to call down from 7.06% to 6.87%.
Call price $1,100, 5 years to call: YTC 7.90% (exact 7.8995%). A higher call price lifts the yield to call to 7.90% — if the bond is called, you get $1,100 back instead of $1,050.
Call price $1,000, 5 years to call: YTC 6.18% (exact 6.1776%). Called at par after 5 years, the yield to call is 6.18% — the same number as the 5-year YTM, because the cash flows are identical.
What the defaults assume
The model assumes the bond pays its coupons on schedule and returns the face value at maturity — it does not model default, downgrades, or early redemption other than the call terms you enter. It assumes the yield is constant over the bond's life and that coupons are reinvested at the same yield, which is the standard YTM convention. It assumes no tax, no fees, and no accrued interest — the price you enter is the clean price. With a 0% coupon the current yield is 0.00%, the YTM is 0.51% (exact 0.5136%) and the total return is $50.00 — the whole return is the discount, earned slowly over 10 years. A price of $0.00 or less is a validation error — the yield cannot be calculated without a price. Zero years to maturity is a validation error — there is no bond left to price. Years to call above the years to maturity is a validation error — a bond cannot be called after it matures. Rounding convention: totals are computed from unrounded values, so rounded parts may differ by a cent from their rounded sum; the reverses are nearest-value solutions, and the exact unrounded figures (925.6126, 990.1236, 5.3278%, 5.6617%, 7.0554%, 5.7895%) are stated wherever the rounded figures appear.
Output · formula · meaning
| Output | Formula | What it means |
|---|---|---|
| Annual coupon | face value × coupon rate | $50.00. |
| Current yield | annual coupon ÷ current price × 100 | 5.26%. |
| Yield to maturity (YTM) | bisection on the present-value equation | 5.6617% → 5.66%. |
| Yield to call (YTC) | same equation, call price at the call date | 7.0554% → 7.06%. |
| Total coupons | annual coupon × years to maturity | $500.00. |
| Capital gain at maturity | face value − current price | $50.00. |
| Total return | total coupons + capital gain | $550.00. |
| Simple annualized return | total return ÷ (price × years) × 100 | 5.7895% → 5.79%. |
| Price for 6% YTM | bisection: the price where YTM = 6.00% | 925.6126 → $925.61. |
| Coupon for 6% current yield | 6% × price ÷ face value | 5.7000% → 5.70%. |
| Face value for $100 annual coupon | $100 ÷ coupon rate | $2,000.00 → $2,000.00. |
| Price for 5% current yield | annual coupon ÷ 5% | $1,000.00 → $1,000.00. |
| Call price for 6% YTC | bisection: the call price where YTC = 6.00% | $990.1236 → $990.12. |
| Coupon for 6% YTM | bisection: the coupon where YTM = 6.00% | 5.3278% → 5.33%. |
| Price $1,000 | same model | YTM 5.00%, current yield 5.00%, annual coupon $50.00, total coupons $500.00, capital gain $0.00, total return $500.00, simple annualized 5.00%, YTC 5.87%. |
| Price $1,100 | same model | YTM 3.79%, current yield 4.55%, annual coupon $50.00, total coupons $500.00, capital gain -$100.00, total return $400.00, simple annualized 3.64%, YTC 3.71%. |
| Price $800 | same model | YTM 7.93%, current yield 6.25%, annual coupon $50.00, total coupons $500.00, capital gain $200.00, total return $700.00, simple annualized 8.75%, YTC 11.09%. |
| Coupon 3% | same model | YTM 3.60%, current yield 3.16%, annual coupon $30.00, total coupons $300.00, capital gain $50.00, total return $350.00, simple annualized 3.68%, YTC 5.04%. |
| Coupon 8% | same model | YTM 8.76%, current yield 8.42%, annual coupon $80.00, total coupons $800.00, capital gain $50.00, total return $850.00, simple annualized 8.95%, YTC 10.09%. |
| 5 years to maturity | same model | YTM 6.18%, current yield 5.26%, annual coupon $50.00, total coupons $250.00, capital gain $50.00, total return $300.00, simple annualized 6.32%, YTC 7.06%. |
| 20 years to maturity | same model | YTM 5.41%, current yield 5.26%, annual coupon $50.00, total coupons $1,000.00, capital gain $50.00, total return $1,050.00, simple annualized 5.53%, YTC 7.06%. |
| 1 year to maturity | same model | YTM 10.39%, current yield 5.26%, annual coupon $50.00, total coupons $50.00, capital gain $50.00, total return $100.00, simple annualized 10.53%, YTC 7.06%. |
| Annual payments | same model | YTM 5.67%, current yield 5.26%, annual coupon $50.00, total coupons $500.00, capital gain $50.00, total return $550.00, simple annualized 5.79%, YTC 7.09%. |
| Quarterly payments | same model | YTM 5.66%, current yield 5.26%, annual coupon $50.00, total coupons $500.00, capital gain $50.00, total return $550.00, simple annualized 5.79%, YTC 7.04%. |
| Face value $2,000 | same model | YTM 15.49%, current yield 10.53%, annual coupon $100.00, total coupons $1,000.00, capital gain $1,050.00, total return $2,050.00, simple annualized 21.58%, YTC 12.12%. |
| Call price $1,000, 3 years to call | same model | YTM 5.66%, current yield 5.26%, annual coupon $50.00, total coupons $500.00, capital gain $50.00, total return $550.00, simple annualized 5.79%, YTC 6.87%. |
| Call price $1,100, 5 years to call | same model | YTM 5.66%, current yield 5.26%, annual coupon $50.00, total coupons $500.00, capital gain $50.00, total return $550.00, simple annualized 5.79%, YTC 7.90%. |
| Call price $1,000, 5 years to call | same model | YTM 5.66%, current yield 5.26%, annual coupon $50.00, total coupons $500.00, capital gain $50.00, total return $550.00, simple annualized 5.79%, YTC 6.18%. |
Who uses this
- The saver comparing a bond to a savings account: they learn a $950.00 bond paying $50.00 a year is a 5.26% current yield and a 5.66% yield to maturity — and they check the $1,100 branch (3.79% YTM) to see what the same bond pays at a premium.
- The buyer checking a discount bond: they learn the $50.00 discount is worth $50.00 of capital gain on top of $500.00 of coupons — and they check the $800 branch (7.93% YTM) to see how much deeper the discount would have to be for a 7% yield.
- The holder worried about a call: they learn the yield to call is 7.06% against a 5.66% yield to maturity — and they check the $1,000 call-price branch (6.18% YTC) to see what happens if the issuer calls at par.
- The investor comparing maturities: they learn the 1-year YTM is 10.39% against 5.41% for 20 years — and they check the 5-year branch (6.18%) to see how the yield changes as maturity shortens.
Accuracy & limitations
The math is the present-value equation solved by bisection: periodic coupon = face × coupon rate ÷ payments per year; price = Σ discounted coupons + face value discounted at the yield; annual coupon = face × coupon rate; current yield = annual coupon ÷ price × 100; total coupons = annual coupon × years; capital gain = face − price; total return = total coupons + capital gain; simple annualized = total return ÷ (price × years) × 100. The 4-decimal exact is shown where the rounding matters: the YTM is 5.6617% (shown as 5.66%), the YTC is 7.0554% (shown as 7.06%), the simple annualized return is 5.7895% (shown as 5.79%). The price for a 6.00% YTM is 925.6126 (shown as $925.61); at $925.61 the YTM is 6.0000%, at $925.62 it is 5.9999%. The call price for a 6.00% YTC is 990.1236 (shown as $990.12); at $989.12 the YTC is 5.9819%, at $991.12 it is 6.0180%. The coupon for a 6.00% YTM is 5.3278% (shown as 5.33%); at 5.3178% the YTM is 5.9896%, at 5.3378% it is 6.0103%. What the model cannot do is predict whether the issuer will pay — YTM assumes every coupon arrives and the face value is returned in full. A bond with a high YTM usually carries high risk, and a callable bond's YTC is the yield that matters if rates fall. For the income the bond pays over time, see the dividend yield calculator; for the tax on the gain, see the capital gains tax on stocks calculator; for the growth of reinvested coupons, see the compound growth calculator; for the retirement income the bond funds, see the 401(k) contribution calculator. This is a calculator, not investment advice.
Cite this calculatorBright Side Kit. “Bond Yield Calculator 2026: YTM, Current Yield & YTC” brightoolbox.com, 2026. Method: periodic coupon = F·c/m; price P = Σ coupons discounted + F discounted at the yield, solved by bisection on y in [−0.99, 5] until |hi−lo| < 1e-12; YTC = the same equation with the call price CP at nc = Yc·m periods; annual coupon = F·c; current yield = annual coupon ÷ P; total coupons = annual coupon × Y; capital gain = F − P; total return = total coupons + capital gain; simple annualized = total return ÷ (P × Y). Validation: P ≤ 0, Y ≤ 0, F ≤ 0, c < 0, Yc > Y, Yc ≤ 0 and CP ≤ 0 are errors. Key idea: a bond bought below its face value pays more than its coupon rate — at $950.00 for a $1,000 bond the 5.00% coupon is a 5.66% yield to maturity. Defaults: face $1,000, coupon 5.00%, price $950.00, 10 years, 2 payments a year, call $1,050, 5 years to call → annual coupon $50.00, current yield 5.26% (exact 5.2632%), YTM 5.66% (exact 5.6617%), YTC 7.06% (exact 7.0554%), total coupons $500.00, capital gain $50.00, total return $550.00, simple annualized 5.79% (exact 5.7895%). Branches: Price $1,000 → YTM 5.00%, current yield 5.00%, total return $500.00; Price $1,100 → YTM 3.79% (exact 3.7893%), current yield 4.55% (exact 4.5455%), total return $400.00; Price $800 → YTM 7.93% (exact 7.9348%), current yield 6.25%, total return $700.00; Coupon 3% → coupon $30.00, YTM 3.60% (exact 3.5998%), current yield 3.16% (exact 3.1579%), total return $350.00; Coupon 8% → coupon $80.00, YTM 8.76% (exact 8.7608%), current yield 8.42% (exact 8.4211%), total return $850.00; 5 years to maturity → YTM 6.18% (exact 6.1776%), total return $300.00; 20 years to maturity → YTM 5.41% (exact 5.4123%), total return $1,050.00; 1 year to maturity → YTM 10.39% (exact 10.3930%), total return $100.00; Annual payments → YTM 5.67% (exact 5.6687%); Quarterly payments → YTM 5.66% (exact 5.6582%); Face value $2,000 → coupon $100.00, YTM 15.49% (exact 15.4939%), current yield 10.53% (exact 10.5263%), total return $2,050.00; Call price $1,000, 3 years to call → YTC 6.87% (exact 6.8728%); Call price $1,100, 5 years to call → YTC 7.90% (exact 7.8995%); Call price $1,000, 5 years to call → YTC 6.18% (exact 6.1776%). Reverses: price for a 6.00% YTM = $925.61 (exact 925.6126; at $925.61 the YTM is 6.0000%, at $925.62 it is 5.9999%); coupon for a 6.00% current yield = 5.70% (exact 5.7000%; at 5.70% the current yield is 6.0000%, at 5.69% it is 5.9895%); face value for a $100.00 annual coupon = $2,000.00 (exact $2,000.00; at $2,000.00 the annual coupon is $100.00, at $1,999.00 it is $99.95); price for a 5.00% current yield = $1,000.00 (exact $1,000.00; at $1,000.00 the current yield is 5.0000%, at $1,001.00 it is 4.9950%); call price for a 6.00% YTC = $990.12 (exact 990.1236; at $989.12 the YTC is 5.9819%, at $991.12 it is 6.0180%); coupon for a 6.00% YTM = 5.33% (exact 5.3278%; at 5.3178% the YTM is 5.9896%, at 5.3378% it is 6.0103%). Edges: 0% coupon → current yield 0.00%, YTM 0.51% (exact 0.5136%), total return $50.00; a price of $0 or less and 0 years to maturity are validation errors.
Bright Side Kit. "Bond Yield Calculator 2026: YTM, Current Yield & YTC" https://brightoolbox.com/bond-yield-calculator/ Accessed October 25, 2026.Frequently asked questions
What is the yield to maturity of a bond?
The yield that makes the present value of all the bond’s payments equal its price. On the defaults — a $1,000 bond paying 5.00% bought for $950.00 with 10 years left — the YTM is 5.66% (exact 5.6617%). There is no closed-form formula: the calculator finds it by bisection.
How do I calculate the current yield?
Divide the annual coupon by the price and multiply by 100. The $50.00 coupon on a $950.00 price is $50.00 ÷ $950.00 × 100 = 5.26% (exact 5.2632%). At a $1,000.00 price the current yield is exactly 5.00%.
What is the difference between YTM and YTC?
YTM assumes you hold the bond to maturity; YTC assumes the issuer calls it early. On the defaults the YTM is 5.66% and the YTC is 7.06% — the call pays $1,050 back after 5 years instead of $1,000 after 10. If the call price were $1,000, the YTC would be 6.18%.
What price gives a 6% yield to maturity?
$925.61. The price for a 6.00% YTM is $925.61 (exact 925.6126). At $925.61 the YTM is 6.0000%; at $925.62 it is 5.9999%. A lower price means a higher yield.
Is a bond bought below face value better?
It pays more than its coupon rate — but the discount is usually there for a reason. At $950.00 the 5.00% coupon is a 5.66% YTM; at $800.00 it is 7.93%. A deep discount often means the market doubts the issuer will pay.
What if the bond pays no coupon?
Then the whole return is the discount. With a 0% coupon the current yield is 0.00%, the YTM is 0.51% (exact 0.5136%) and the total return is $50.00 — the $50.00 gain from $950.00 to $1,000.00 spread over 10 years.
Why is the YTM higher than the coupon rate here?
Because you paid less than the face value. The $50.00 coupon is 5.26% on $950.00, and the $50.00 capital gain at maturity lifts the yield to 5.66%. Buy at $1,100 and the YTM falls to 3.79% — below the coupon rate.
What does the simple annualized return mean?
The total return spread evenly over the years, without compounding. The $550.00 total return over 10 years on $950.00 is 5.79% a year simple (exact 5.7895%). It is a plain average, not the compounded yield — that is the 5.66% YTM.