Bond Yield Calculator
Calculate a bond's current yield and approximate yield to maturity from its price, coupon and face value.
Current yield
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Approx. yield to maturity —
Annual coupon payment —
YTM uses a standard approximation formula, not the exact iterative solution — treat it as a close estimate.
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How it works
Current yield = annual coupon ÷ price; approx. YTM = (coupon + (face−price)/years) ÷ ((face+price)/2)Frequently Asked Questions
What is a bond's current yield?
Annual coupon payment divided by the bond's current market price: a $1,000 face-value bond with a 5% coupon ($50/year) trading at $950 has a current yield of about 5.26% — higher than the coupon rate because it trades below face value.
What is yield to maturity (YTM)?
The total return if you hold the bond to maturity, including both coupon income and the gain or loss from buying below or above face value. This calculator uses a standard approximation formula; exact YTM requires solving iteratively, which bond calculators and financial software do precisely.
Why does bond price move opposite to yield?
A bond's coupon is fixed, so if market interest rates rise, existing bonds with lower coupons become less attractive and must sell at a discount (lower price) to offer a competitive yield — and vice versa when rates fall.