Loading page
About this tool
Current yield and approximate yield-to-maturity for a bond.
A bond yield calculator converts a bond's face value, coupon rate, market price and years to maturity into two numbers: current yield (annual coupon ÷ market price) and an approximate yield to maturity using the standard bond-yield approximation, (C + (F − P) / n) ÷ ((F + P) / 2). It is built for investors comparing bonds that trade above or below par, where the printed coupon rate no longer describes the return. You get the annual coupon in currency, the current yield, the approximate YTM and the discount or premium to face value in one pass.
Open Bond Yield Calculator on AltFTool — it loads instantly in your browser.
Enter the face value of the bond, which is the amount that will be repaid at maturity
Input the coupon rate as a percentage per year, representing the annual interest payment
Provide the current market price of the bond and the number of years remaining until maturity to calculate the yield
Shows current yield and approximate YTM side by side so you can see how much of the return is coupon and how much is price pull-to-par.
Reports the discount or premium (price minus face value) as a currency figure, which is the amount amortised across the remaining years.
Applies the standard (C + (F − P) / n) ÷ ((F + P) / 2) formula rather than a hidden iterative solve, so the result is reproducible by hand.
Current yield is only the annual coupon divided by the market price, while yield to maturity also spreads the gain or loss between price and face value over the remaining years. On a 1,000 face bond with a 6% coupon bought at 950 with 10 years left, current yield is 6.32% but approximate YTM is about 6.67%, because the 50 discount is recovered at maturity.
It uses the bond-yield approximation formula: annual coupon plus (face value minus price) divided by years, all divided by the average of face value and price. That average, (F + P) / 2, stands in for the capital tied up over the life of the bond, which is why the answer is an approximation rather than the exact internal rate of return.
Because you paid less than face value. A bond bought at a discount pays its coupon on the full face value while you invested less, and you are repaid the full face value at maturity, so both components push the yield above the coupon rate; a bond bought at a premium does the reverse.
It is usually within a few basis points to a few tenths of a percent of the exact figure, with the gap widening for long maturities and prices far from par. For a precise number, or for any actual purchase decision, use an exact IRR calculation and consult a qualified financial professional — this tool is informational, not investment advice.
Add the Bond Yield Calculator widget to your blog or website — free, responsive, no signup. Just keep the “Widget by AltFTool” credit link visible.
<iframe src="https://www.altftool.com/embed/widget/bond-yield-calculator"
title="Bond Yield Calculator — free AltFTool widget"
width="100%" height="640" style="border:0;border-radius:12px;overflow:hidden"
loading="lazy" referrerpolicy="no-referrer-when-downgrade" allow="clipboard-write"></iframe>
<p style="font-size:12px;margin:4px 0 0">Widget by <a href="https://www.altftool.com/tools/all/bond-yield-calculator?utm_source=embed&utm_medium=widget" rel="nofollow">AltFTool — free online tools</a></p>