Free Bond Calculator - Calculate Yield & Interest Earnings
Calculate your bond yield and interest earnings, including yield to maturity and current yield.
Formula & Methodology
Yield to Maturity (YTM) is the total anticipated return if the bond is held to maturity, accounting for both coupon interest and the capital gain/loss from buying at a discount or premium.
- YTM (Approx) = (C + ((F - P) / n)) / ((F + P) / 2)
Worked Example
Using the Bond Calculator: apply the formula above to your input values. For instance, YTM (Approx) = (C + ((F - P) / n)) / ((F + P) / 2). The tool performs each step instantly and shows the result.
Frequently Asked Questions
How is a bond price determined?
It is the present value of the bond’s future coupon payments plus its face value, discounted at the current market yield.
Why do bond prices fall when rates rise?
New bonds pay higher coupons, so existing lower-coupon bonds must trade at a discount to stay competitive.
What is yield to maturity?
It is the total annual return you earn if you hold the bond until it matures, including coupons and any price gain or loss.