Work out money market yield instantly with clear inputs, formula shown and shareable results.
Short-term instruments are quoted on several conventions. The holding period yield is the raw gain on price; the money market yield annualises it on 360 days, the bond equivalent yield on 365, and the discount rate divides the gain by face rather than price.
Yield conventions
HPY = (F-P)/P; MMY = HPY×360/d; BEY = HPY×365/d; discount = (F-P)/F × 360/d
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.
Because it divides by face value, which is larger than the price paid, understating the true return.
The bond equivalent yield, since bonds and deposits are quoted on a 365-day basis.