Bond Duration Calculator

Measure a bond’s interest-rate sensitivity through Macaulay and modified duration.

About Bond Duration Calculator

Duration is the weighted average time to receive the cash flows, and dividing by one plus the yield converts it into a price sensitivity. A modified duration of 7 means roughly a 7% price fall for a one-point rise in yields. Duration is the single most important risk number for a bond portfolio, because it converts an interest-rate view directly into an expected price move.

Formula

Bond Duration

Modified duration = Macaulay duration ÷ (1 + yield); price change ≈ −modified duration × yield change

Macaulay duration: Weighted average time to receive the bond’s cash flows
modified duration: Percentage price change for a one-point move in yield

Worked example

With the default values below, Bond Duration Calculator returns Modified Duration of 7.7217. Change any input above and every figure here is recalculated in your browser.

Inputs used

Face valueminimum 0.01: 1,000
Annual coupon rateaccepts 0–100 %: 5 %
Market yieldaccepts 0–100 %: 5 %
Years to maturityaccepts 0.5–50 years: 10 years

Results

Modified Duration: 7.7217 years
Macaulay Duration: 8.1078 years
Price Change for a 1% Yield Rise: -7.722%
Price Change in Money for a 1% Rise: -$77.22
Interpretation: Moderately rate-sensitive

Step by step

1Values used
2Bond Duration
3Modified Duration= 7.7217 years
4Macaulay Duration= 8.1078 years
5Price Change for a 1% Yield Rise= -7.722
6Price Change in Money for a 1% Rise= -77.22
7Interpretation= Moderately rate-sensitive

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or fees or charges into account.
Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Bond Duration calculated?

Modified duration = Macaulay duration ÷ (1 + yield); price change ≈ −modified duration × yield change Duration is the weighted average time to receive the cash flows, and dividing by one plus the yield converts it into a price sensitivity. A modified duration of 7 means roughly a 7% price fall for a one-point rise in yields.

Why does Bond Duration matter?

Duration is the single most important risk number for a bond portfolio, because it converts an interest-rate view directly into an expected price move.

What values do I need to enter?

This calculator takes 4 inputs: Face value, Annual coupon rate, Market yield, Years to maturity. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.