Current Yield Calculator

Divide the annual coupon by the market price to get a bond’s current yield.

About Current Yield Calculator

The coupon is fixed against face value, so when the price falls the same payment represents a higher yield. Current yield ignores any capital gain or loss at maturity, which is why yield to maturity is the fuller measure. Current yield is the right measure for income planning and the wrong one for total return, because it excludes the pull to par.

Formula

Current Yield

Current yield = annual coupon ÷ market price

coupon: Fixed interest paid on face value, not on market price

Worked example

With the default values below, Current Yield Calculator returns Current Yield of 5.319%. 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

Results

Current Yield: 5.319%
Annual Coupon Payment: $50.00
Price as Share of Face Value: 94.00%
Discount or Premium to Face: -$60.00
Comparison: Trading at a discount, so current yield exceeds the coupon rate

Step by step

1Values used
2Current Yield
3Current Yield= 5.319
4Annual Coupon Payment= 50.00
5Price as Share of Face Value= 94.00
6Discount or Premium to Face= -60.00
7Comparison= Trading at a discount, so current yield exceeds the coupon rate

Assumptions and limits

The result is derived only from the 3 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 Current Yield calculated?

Current yield = annual coupon ÷ market price The coupon is fixed against face value, so when the price falls the same payment represents a higher yield. Current yield ignores any capital gain or loss at maturity, which is why yield to maturity is the fuller measure.

Why does Current Yield matter?

Current yield is the right measure for income planning and the wrong one for total return, because it excludes the pull to par.

What values do I need to enter?

This calculator takes 3 inputs: Face value, Annual coupon rate, Current market price. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.