Bond Yield to Maturity Calculator

Estimate the total annual return of holding a bond to maturity, including the pull to par.

About Bond Yield to Maturity Calculator

The approximation adds the annualised capital gain to the coupon and divides by the average of price and face value. It is accurate to a few basis points for typical bonds and avoids the iteration an exact solution needs. Yield to maturity is the only figure that lets bonds with different coupons and prices be compared, because it combines income and capital return.

Formula

Bond Yield to Maturity

Approximate YTM = (coupon + (face − price) ÷ years) ÷ ((price + face) ÷ 2)

pull to par: Annualised gain or loss as the price converges on face value at maturity

Worked example

With the default values below, Bond Yield to Maturity Calculator returns Yield to Maturity of 5.773%. 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 %
Current market priceminimum 0.01: 940
Years to maturityaccepts 0.5–50 years: 10 years

Results

Yield to Maturity: 5.773%
Current Yield: 5.319%
Annualised Pull to Par: 0.638%
Annual Coupon Payment: $50.00
Total Cash Received if Held to Maturity: $1,500.00

Step by step

1Values used
2Bond Yield to Maturity
3Yield to Maturity= 5.773
4Current Yield= 5.319
5Annualised Pull to Par= 0.638
6Annual Coupon Payment= 50.00
7Total Cash Received if Held to Maturity= 1,500.00

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 3 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 Yield to Maturity calculated?

Approximate YTM = (coupon + (face − price) ÷ years) ÷ ((price + face) ÷ 2) The approximation adds the annualised capital gain to the coupon and divides by the average of price and face value. It is accurate to a few basis points for typical bonds and avoids the iteration an exact solution needs.

Why does Bond Yield to Maturity matter?

Yield to maturity is the only figure that lets bonds with different coupons and prices be compared, because it combines income and capital return.

What values do I need to enter?

This calculator takes 4 inputs: Face value, Annual coupon rate, Current market price, 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.