Bond Yield Calculator
Current yield and yield to maturity of a bond.
Optional
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Enter your numbers to see the result.
This bond yield calculator works out the real return on a bond or NCD. Enter the face value, the price you pay, the coupon rate, how often interest is paid and the years to maturity. It shows the current yield and the yield to maturity (YTM), which accounts for buying at a discount or premium, plus the total cash you will receive.
What is a Bond Yield Calculator?
A bond is a loan to a government or company that pays fixed interest, the coupon, and returns the face value at maturity. Bonds trade in the market, so you may pay more or less than face value. That changes your actual return.
Current yield is simply the yearly coupon divided by the price. Yield to maturity (YTM) is the full return if you hold to maturity, including the gain or loss from the price difference. It is the best single number for comparing bonds, NCDs and FDs. This bond yield calculator works out both.
How does the Bond Yield Calculator work?
The calculator lists every coupon payment and the final face value, then searches for the yield at which their present value equals the price you pay. That yield, expressed yearly, is the YTM. Current yield is the yearly coupon divided by the price.
How to use the Bond Yield Calculator step by step
- Enter the face value.
- Enter the price you pay.
- Enter the coupon rate and payment frequency.
- Enter the years to maturity.
- Optionally enter the number of bonds.
- Compare YTM with other investments.
Bond Yield Calculator example with real numbers
You buy 10 bonds with a ₹1,000 face value for ₹970 each. They pay an 8% coupon half-yearly and mature in 4 years.
| Example input | Value |
|---|---|
| Face value | ₹1,000.00 |
| Price you pay | ₹970.00 |
| Coupon rate (yearly) | 8% |
| Interest paid | Half-yearly |
| Years to maturity | 4 |
| Number of bonds (optional) | 10 |
| Example output | Value |
|---|---|
| Yield to maturity (YTM) | 8.91% |
| Current yield | 8.25% |
| Coupon per payment (per bond) | ₹40.00 |
| Price vs face value | Discount |
| Total you invest | ₹9,700.00 |
| Total cash you receive | ₹13,200.00 |
| Total gain | ₹3,500.00 |
The current yield is 8.25%, but because you also gain ₹30 per bond at maturity, the bond yield calculator shows a YTM of 8.91%.
Key features of this Bond Yield Calculator
- YTM solved precisely
- Current yield
- Yearly to monthly coupons
- Cash flow schedule
- Total cash and gain
Who should use the Bond Yield Calculator?
Who is this Bond Yield Calculator for?
- Investors in corporate bonds and NCDs
- Government securities buyers on RBI Retail Direct
- Bond platform users
- Finance students
Practical use cases
- Comparing an NCD with an FD
- Checking whether a discount bond is good value
- Explaining YTM to clients
- Planning bond income
Key benefits
- Accurate: true YTM, not just coupon.
- Flexible: any frequency.
- Clear: full cash flow table.
- Fast: instant.
Tips for better results
- Compare bonds on YTM, not coupon.
- Check the credit rating; higher yields usually mean higher risk.
- Look at liquidity; some bonds are hard to sell before maturity.
- Interest from most bonds is taxable at your slab.
Common mistakes to avoid
- Choosing the highest coupon without checking price and rating.
- Ignoring accrued interest when buying between coupon dates.
- Assuming YTM is guaranteed if you sell early.
- Forgetting tax on interest.
Limitations of this Bond Yield Calculator
- It ignores accrued interest and exact settlement dates.
- Callable or amortising bonds are not modelled.
- Default risk is not reflected.
Bond Yield Calculator vs other ways to calculate
| Measure | Includes price gain/loss | Includes timing |
|---|---|---|
| Coupon rate | No | No |
| Current yield | No | No |
| YTM | Yes | Yes |
| Yield to call | Yes, to call date | Yes |
For government T-bills, use the T-bill calculator. For bank deposits, see the FD calculator.
Privacy and data handling
This Bond Yield Calculator runs entirely in your browser. The numbers you type are not sent to Qorico or stored on any server, and nothing is saved after you close the page. The Copy and Download buttons create the result on your own device. If the page has analytics turned on, it may count that a calculation happened, but it does not record the values you entered.
Bond Yield Calculator FAQs
What is yield to maturity?
The total yearly return if you buy at today’s price and hold to maturity, including coupons and the price difference.
What is the difference between current yield and YTM?
Current yield ignores the gain or loss at maturity; YTM includes it.
Why does YTM rise when the price falls?
You pay less for the same coupons and face value, so your return is higher.
How is bond interest taxed in India?
Interest is taxed at your slab rate; capital gains depend on the bond type and holding period.
Are bonds safer than stocks?
Usually less volatile, but they carry credit and interest rate risk.
Where can I buy government bonds?
Through RBI Retail Direct, banks, brokers and bond platforms.
Related tools
Sources and references
We checked the method and the current figures used in this Bond Yield Calculator against these official and primary sources:
Written and reviewed by the Qorico Team
