Introduction
Yield to maturity (YTM) is the total return you earn if you buy a bond today and hold it until it pays back. It counts both the interest payments and any gain or loss between the price you pay and the face value you get at the end.
This YTM calculator does that math for you. Type in the bond price, face value, coupon rate, years to maturity, and how often the bond pays. Then press Calculate.
You get the exact YTM, an estimated YTM, and the current yield. You also see if the bond trades at a discount, at par, or at a premium. Below that, the tool shows each step of the math, a price vs. yield chart, and a full table of every cash flow and its present value.
Use it to compare bonds, check a broker's quote, or study for a finance class. It works for regular coupon bonds and zero coupon bonds. If you want to price a bond instead of solve for its yield, try the Bond Value Calculator, or start with the general Bond Calculator for a broader overview.
How to use our Yield to Maturity (YTM) Calculator
Enter five details about your bond and the YTM calculator shows your exact yield to maturity, an estimated YTM, your current yield, and a full cash flow schedule with charts.
Current Bond Price: Type the price you pay to buy the bond today. Your broker may quote it per $100 of par, so a quote of $95 means $950.00.
Face Value (Par Value): Type the amount the issuer pays you back at maturity. Most bonds use $1,000.
Annual Coupon Rate: Type the yearly interest rate printed on the bond as a percent. A 5% coupon on a $1,000 bond pays $50 a year. Enter 0 for a zero-coupon bond.
Years to Maturity: Type how many years are left until the bond pays you back. You can use decimals, like 3.5 for three and a half years.
Coupon Payment Frequency: Pick how often the bond pays interest — annually, semiannually, quarterly, or monthly. Most U.S. bonds pay semiannually. Choosing Zero Coupon locks the coupon rate at 0%.
Click Calculate to see your results, or click Reset to clear the form and start over.
What Is Yield to Maturity (YTM)?
Yield to maturity is the total return you earn on a bond if you buy it today and hold it until it matures. It counts every coupon payment you collect plus any gain or loss between the price you pay and the face value you get back at the end. YTM is shown as a yearly percent, so you can compare bonds of different prices, coupons, and maturity dates side by side. It is closely related to the internal rate of return — YTM is simply the IRR of a bond's cash flows.
The Parts of a Bond
- Bond price: what the bond costs on the market right now.
- Face value (par): the amount the issuer pays back at maturity. Most bonds use $1,000.
- Coupon rate: the yearly interest rate printed on the bond. A 5% coupon on $1,000 pays $50 a year.
- Years to maturity: how long until the bond pays back the face value.
- Payment frequency: how often coupons are paid. Most U.S. bonds pay twice a year.
Discount, Par, and Premium Bonds
Bond prices move opposite to yields. When market rates go up, bond prices fall. When rates go down, prices rise.
- Discount: price is below par, so YTM is higher than the coupon rate.
- Par: price equals face value, so YTM is about equal to the coupon rate.
- Premium: price is above par, so YTM is lower than the coupon rate.
YTM vs. Current Yield
Current yield is just the yearly coupon divided by the price. It is quick, but it ignores the gain or loss you get at maturity. YTM includes that, so it gives a fuller picture of your return. The "estimated" YTM uses a simple shortcut formula, while the "exact" YTM is solved by trial and error until the present value of all future payments equals the price you paid. For a wider view of yield measures, the Bond Yield Calculator covers current yield and yield to call as well.
Zero-Coupon Bonds
A zero-coupon bond pays no interest along the way. You buy it below face value and collect the full face value at maturity. All of your return comes from that price gap, so the math is simpler and there is no current yield to speak of. If you are buying government paper, the Treasury Bond Calculator and Savings Bond Calculator handle those cases directly.
What YTM Does Not Tell You
YTM assumes you hold the bond to maturity, the issuer never misses a payment, and you reinvest every coupon at the same yield. Real life can differ. YTM also ignores taxes, trading fees, and the chance the issuer calls the bond back early. Use it as a strong comparison tool, not a promise.
Before you commit, check how much a bond's stated rate is worth after compounding with the APY Calculator, see how rising prices eat into fixed payments with the Inflation Calculator, and estimate what you owe on any gain with the Capital Gains Tax Calculator.
Related Investment Tools
- Investment Calculator — project growth across a whole portfolio.
- Compound Interest Calculator — see how reinvested coupons compound over time.
- NPV Calculator and DCF Calculator — value any stream of future cash flows.
- CAGR Calculator and ROI Calculator — measure realized returns after you sell.
- Dividend Yield Calculator — compare bond yields against stock income.
- WACC Calculator — use a bond's yield as the cost of debt.
- TVM Calculator and Future Value Calculator — work through the time value of money behind the formula.
- Rule of 72 Calculator — a fast mental check on how long a yield takes to double your money.