# Bond Equivalent Yield Calculator (BEY)

URL: https://speedycalculator.com/calculators/finance/bond-equivalent-yield/
Last updated: 2026-10-25

> The bond equivalent yield calculator annualizes the return on a discount security such as a Treasury bill or zero-coupon bond from its price, face value and days to maturity, so it can be compared with coupon bonds.

## Inputs

- Bond price
- Face value
- Days to maturity

## Results

- Bond equivalent yield (BEY)
- Bank discount yield
- Effective annual yield

## Formula

```
BEY = (face value − price) ÷ price × 365 ÷ days to maturity
Bank discount yield = (face − price) ÷ face × 360 ÷ days
```

## Explanation

Treasury bills don't pay coupons: you buy them at a discount and receive face value at maturity. The bond equivalent yield puts that return on the same 365-day annual basis as other bonds.

### How to use the Bond Equivalent Yield Calculator

- **Bond price**
- **Face value**
- **Days to maturity**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the price paid, the face value and the days to maturity.

### Tips

- Check whether rates are quoted annually, semi-annually or per period.
- Bond prices and yields move in opposite directions – a higher yield means a lower price.
- Use the bond's clean price (without accrued interest) for yield calculations.
- Credit ratios are most useful when tracked over several years.

### Common mistakes to avoid

- Confusing the coupon rate with the yield.
- Using the face value instead of the market price.
- Forgetting that callable bonds may be redeemed before maturity.

### Inputs explained

FieldWhat to enterBond priceAmount in your currencyFace valueAmount in your currencyDays to maturityA number

### What each result means

- **Bond equivalent yield (BEY)** = ([Face value] - [Bond price])÷[Bond price]×365÷[Days to maturity]×100
- **Bank discount yield** = ([Face value] - [Bond price])÷[Face value]×360÷[Days to maturity]×100
- **Effective annual yield** = (([Face value]÷[Bond price])^(365÷[Days to maturity]) - 1)×100

### Example values

How the main result changes when **Bond price** changes and everything else stays at the example values above:

Bond priceBond equivalent yield (BEY) (%)492.5206.658738.7570.9229853.0541,231.25-37.6671,477.5-64.8141,970-98.748

## Worked example

Inputs — Bond price: $985; Face value: $1,000; Days to maturity: 182.

Results — **Bond equivalent yield (BEY) = 3.054 %**; Bank discount yield = 2.967 %; Effective annual yield = 3.077 %.

## FAQ

**What is bond equivalent yield?**
The annualized simple yield on a discount bond using a 365-day year.

**Why are T-bill yields quoted differently?**
Banks traditionally quote a discount yield on face value with a 360-day year.

**Is BEY compounded?**
No – the effective annual yield includes compounding.

**What formula does the Bond Equivalent Yield Calculator use?**
BEY = (face value − price) ÷ price × 365 ÷ days to maturity.


## Sources

- [TreasuryDirect – Treasury bills](https://www.treasurydirect.gov/)