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Money Market Yield Calculator

Work out money market yield instantly with clear inputs, formula shown and shareable results.

About Money Market Yield Calculator

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.

Formula

Yield conventions

HPY = (F-P)/P; MMY = HPY×360/d; BEY = HPY×365/d; discount = (F-P)/F × 360/d

Worked example

With the default values below, Money Market Yield Calculator returns Money Market Yield (360-Day) of 6.0914%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Face Value At Maturityminimum 0
1,000,000
Purchase Priceminimum 0
985,000
Days To Maturityaccepts 1–366
90

Results

Money Market Yield (360-Day)
6.0914%
Holding Period Yield
1.5228%
Bond Equivalent Yield (365-Day)
6.1760%
Bank Discount Rate
6.0000%

Step by step

  1. 1Values used
  2. 2Yield conventions
  3. 3Money Market Yield (360-Day)= 6.0914
  4. 4Holding Period Yield= 1.5228
  5. 5Bond Equivalent Yield (365-Day)= 6.1760
  6. 6Bank Discount Rate= 6.0000

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, fees or charges or compounding frequency 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 the discount rate the lowest?

Because it divides by face value, which is larger than the price paid, understating the true return.

Which convention should be used to compare?

The bond equivalent yield, since bonds and deposits are quoted on a 365-day basis.

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