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Yield Curve Calculator

Compare yields across maturities to measure the slope and shape of the yield curve.

About Yield Curve Calculator

A normal curve slopes upward because investors demand compensation for locking money away. Inversion means the market expects rates to fall, which usually accompanies an expected slowdown. The ten-year minus two-year spread has preceded most modern recessions, which is why its sign attracts so much attention.

Formula

Yield Curve

Term spread = long-maturity yield − short-maturity yield

inversion
Short yields above long yields, historically a recession precursor

Worked example

With the default values below, Yield Curve Calculator returns Ten-Year Minus Two-Year Spread of -0.200%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Three-month yieldaccepts 0–100 %
4.8 %
Two-year yieldaccepts 0–100 %
4.3 %
Ten-year yieldaccepts 0–100 %
4.1 %
Thirty-year yieldaccepts 0–100 %
4.35 %

Results

Ten-Year Minus Two-Year Spread
-0.200%
Ten-Year Minus Three-Month Spread
-0.700%
Curve Shape
Inverted — short rates exceed long rates
Thirty-Year Minus Ten-Year Slope
0.250%
Recession Signal
Both spreads inverted — historically a strong recession signal

Step by step

  1. 1Values used
  2. 2Yield Curve
  3. 3Ten-Year Minus Two-Year Spread= -0.200
  4. 4Ten-Year Minus Three-Month Spread= -0.700
  5. 5Curve Shape= Inverted — short rates exceed long rates
  6. 6Thirty-Year Minus Ten-Year Slope= 0.250
  7. 7Recession Signal= Both spreads inverted — historically a strong recession signal

Assumptions and limits

  • The result is derived only from the 4 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 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 Yield Curve calculated?

Term spread = long-maturity yield − short-maturity yield A normal curve slopes upward because investors demand compensation for locking money away. Inversion means the market expects rates to fall, which usually accompanies an expected slowdown.

Why does Yield Curve matter?

The ten-year minus two-year spread has preceded most modern recessions, which is why its sign attracts so much attention.

What values do I need to enter?

This calculator takes 4 inputs: Three-month yield, Two-year yield, Ten-year yield, Thirty-year yield. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.

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