Work out carry and roll down instantly with clear inputs, formula shown and shareable results.
Carry is the yield earned above funding cost; roll-down is the price gain from the bond ageing into a lower point on an upward-sloping curve. Together they give the return if the curve simply stays where it is.
Carry and roll
Carry = (yield - funding) × horizon; roll-down = yield fall × duration
Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.
Because a bond with less time to maturity is valued at a lower yield on an upward-sloping curve, so its price rises.
A rise in yields large enough to overwhelm carry and roll — the break-even move is total return divided by duration.