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Modified Duration Calculator

Work out modified duration instantly with clear inputs, formula shown and shareable results.

About Modified Duration Calculator

Macaulay duration is the present-value weighted average time to receive a bond's cash flows. Dividing by one plus the yield gives modified duration, which reads directly as the percentage price fall for a one point rise in yield.

Formula

Duration

D_mac = Σ t·PV(CFₜ) / Price; D_mod = D_mac / (1 + y)

Worked example

With the default values below, Modified Duration Calculator returns Modified Duration of 6.8683. Change any input above and every figure here is recalculated in your browser.

Inputs used

Annual Coupon Rateaccepts 0–100 %
7 %
Yield To Maturityaccepts 0–100 %
8 %
Years To Maturityaccepts 1–40
10

Results

Modified Duration
6.8683 years
Macaulay Duration
7.4178 years
Bond Price Per 100 Face
$93.2899
Price Change For A 1% Yield Rise
-6.868%

Step by step

  1. 1Values used
  2. 2Duration
  3. 3Modified Duration= 6.8683 years
  4. 4Macaulay Duration= 7.4178 years
  5. 5Bond Price Per 100 Face= 93.2899
  6. 6Price Change For A 1% Yield Rise= -6.868

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 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
  • 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.

Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.

Frequently Asked Questions

Why is duration shorter than maturity?

Because coupons return cash before maturity. Only a zero-coupon bond has duration equal to its maturity.

Is duration accurate for large yield moves?

No. It is a first-order estimate; add the convexity term for moves beyond about 50 basis points.

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Modified Duration Calculator – Calculate Modified Duration