Bond Yield Calculator
Use this bond yield calculator to find a bond’s yield to maturity (YTM) and current yield from its price, coupon rate and years to maturity. It also shows how much the bond’s price could change if interest rates rise or fall, which matters more than ever with Treasury yields near their highest levels in more than 20 years.
Estimate only. YTM is shown as an annual rate compounded at the payment frequency (bond-equivalent yield for twice-yearly bonds) and assumes every payment is made on time and reinvested at the same yield. Ignores taxes, fees and accrued interest.
Your bond’s price if yields change
This table updates with your inputs. It shows what the same bond would be worth if market yields moved up or down from today’s yield to maturity.
| Market yield | Bond price | Change from today |
|---|
How the bond yield calculator works
A bond pays a fixed amount of interest, called the coupon, and returns its face value at maturity. Its yield depends on how much you pay for those payments today.
There is no simple formula for yield to maturity, so the calculator finds it by trying yields until the present value of all future payments matches the price you entered. This is the same method financial calculators and spreadsheets use.
- Price below face value (discount): YTM is higher than the coupon rate, because you also gain the difference at maturity.
- Price above face value (premium): YTM is lower than the coupon rate, because you lose the extra you paid by maturity.
- Price equal to face value (par): YTM, current yield and coupon rate are all the same.
Coupon rate vs. current yield vs. yield to maturity
| Measure | What it shows | For our example bond |
|---|---|---|
| Coupon rate | Fixed interest as a % of face value | 4.00% |
| Current yield | Interest as a % of today’s price | 4.35% |
| Yield to maturity | Full yearly return if held to maturity | 5.03% |
Yield to maturity is the best single number for comparing bonds, because it counts both the interest and the gain or loss from the price you pay. Current yield is useful for income, but it ignores what happens at maturity.
Why bond prices fall when yields rise
The coupon on a bond never changes. When new bonds pay more, buyers will only take an older, lower-paying bond at a lower price. The table shows the price of a $1,000 bond with a 4% coupon, paid twice a year, at different market yields:
| Market yield | 2 years left | 10 years left | 30 years left |
|---|---|---|---|
| 3% | $1,019.27 | $1,085.84 | $1,196.90 |
| 4% | $1,000.00 | $1,000.00 | $1,000.00 |
| 5% | $981.19 | $922.05 | $845.46 |
| 6% | $962.83 | $851.23 | $723.24 |
Longer bonds move much more. If yields rise from 4% to 6%, the 2-year bond loses about 4% of its value, but the 30-year bond loses about 28%. That is why duration, shown in the calculator, matters: a modified duration of 8 means the price moves about 8% for each 1 percentage point change in yield.
This is happening in real markets now. On October 1, 2026, the 10-year Treasury yield briefly rose to about 5.33%, its highest level since 2002. At that yield, a 10-year bond with a 4% coupon is worth about $897.93 per $1,000 of face value. Higher yields also tend to push up mortgage rates and the rates on new CDs and savings accounts.
Worked example
You buy a bond with a $1,000 face value and a 4% coupon, paid twice a year, for $920. It matures in 10 years.
- Interest per year: 4% × $1,000$40.00
- Current yield: $40 ÷ $9204.35%
- Total interest over 10 years$400.00
- Gain at maturity: $1,000 − $920$80.00
- Total return if held to maturity$480.00
- Yield to maturity5.03%
The bond’s modified duration is about 8.1. If market yields rose another 1 percentage point, its price would fall to about $849.36. If they fell 1 point, it would rise to about $997.74. If you hold it to maturity, you still receive the full $1,000.
Bonds, CDs or savings?
When yields are high, safe options all pay more. A CD locks in a rate with no price changes, but you pay a penalty to cash out early. A Treasury can be sold any day, but its price can move, and its interest is free from state income tax. A high-yield savings account keeps your money available, but its rate can drop at any time. To compare, run the same amount through our CD calculator and compound interest calculator. Keep your emergency fund in cash you can reach quickly.
Frequently asked questions
What is the difference between coupon rate, current yield and yield to maturity?
The coupon rate is the interest the bond pays as a percentage of its face value, and it never changes. Current yield is the yearly interest divided by the price you pay today. Yield to maturity (YTM) is the total yearly return if you buy at today's price, hold until the bond matures and receive every payment, including any gain or loss from the price you paid.
Why do bond prices fall when yields rise?
A bond's coupon is fixed. When new bonds start paying higher interest, older bonds with lower coupons are worth less, so their prices drop until their yield matches the market. When market yields fall, older bonds with higher coupons become more valuable and their prices rise.
Do I lose money on a bond if yields go up?
Only if you sell before maturity. If you hold a bond to maturity and the issuer does not default, you receive the full face value back plus all the interest, whatever happens to prices along the way. The price drop matters if you need to sell early or if you own a bond fund.
What is a good bond yield?
It depends on the type of bond and the market. Compare a bond's yield to maturity with a Treasury of the same maturity. A higher yield than Treasuries usually means more credit risk. On October 1, 2026, the 10-year Treasury yield briefly reached about 5.33%, the highest level since 2002.
Does yield to maturity assume I reinvest the interest?
Yes. YTM assumes each interest payment is reinvested at the same yield until the bond matures. If you spend the interest or reinvest at a lower rate, your actual return will be somewhat different.
How is bond interest taxed?
Interest on corporate bonds is taxed as ordinary income at the federal and state level. Interest on U.S. Treasury bonds, notes and bills is taxed by the federal government but is exempt from state and local income tax. Interest on most municipal bonds is free from federal income tax.
Sources and how we calculated
Prices and yields use the standard present value method, with yield to maturity found numerically and quoted as an annual rate compounded at the payment frequency. Duration is Macaulay duration divided by one plus the yield per period. The relationship between rates and bond prices is explained in the SEC’s investor bulletin on fixed income investments. The October 1, 2026 Treasury yield is from TheStreet’s market report for that day.
This calculator is for educational purposes only and is not investment advice. Bond prices, yields and risks vary, and past or current yields do not predict future returns. We do not recommend buying or selling any security. Consider talking with a licensed financial professional before investing.