# Yield to Maturity Calculator (YTM)

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

> The yield to maturity calculator finds the annual return on a bond held until maturity from its price, face value, coupon rate, coupon frequency and years to maturity, and compares it with the approximate YTM formula.

## Inputs

- Face value
- Bond price
- Annual coupon rate (%)
- Coupon frequency
- Years to maturity

## Results

- Yield to maturity (YTM)
- Approximate YTM
- Current yield
- Total coupons to maturity

## Formula

```
Exact: solve price = Σ C ÷ (1 + y/f)^t + F ÷ (1 + y/f)^N for y
Approximation: YTM ≈ [C + (F − P) ÷ n] ÷ [(F + P) ÷ 2]
```

## Explanation

YTM assumes all coupons are reinvested at the same yield and the issuer pays in full. It moves inversely with the price: buy a bond cheaper and its YTM rises.

### How to use the Yield to Maturity Calculator

- **Face value**
- **Bond price**
- **Annual coupon rate**
- **Coupon frequency**
- **Years to maturity**

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

### How it works

Enter the face value, the price, the coupon rate and frequency, and years 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 enterFace valueAmount in your currencyBond priceAmount in your currencyAnnual coupon rateIn %Coupon frequencyChoose one: Annually, Semi-annually, Quarterly, MonthlyYears to maturityA number

### What each result means

- **Yield to maturity (YTM)** = [Yield to maturity (YTM)]([Bond price], [Face value], [Annual coupon rate]÷100, [Coupon frequency], [Years to maturity])×100
- **Approximate YTM** = ([Face value]×[Annual coupon rate]÷100 + ([Face value] - [Bond price])÷[Years to maturity])÷(([Face value] + [Bond price])÷2)×100
- **Current yield** = [Face value]×[Annual coupon rate]÷100÷[Bond price]×100
- **Total coupons to maturity** = [Face value]×[Annual coupon rate]÷100×[Years to maturity]

### Example values

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

Face valueYield to maturity (YTM) (%)7500.471,1254.1911,5007.0941,8759.552,25011.7273,00015.576

## Worked example

Inputs — Face value: $1,500; Bond price: $1,350; Annual coupon rate: 6 %; Coupon frequency: Semi-annually; Years to maturity: 15.

Results — **Yield to maturity (YTM) = 7.094 %**; Approximate YTM = 7.018 %; Current yield = 6.667 %; Total coupons to maturity = $1,350.00.

## FAQ

**What is yield to maturity?**
The annual return of a bond held to maturity with coupons reinvested.

**How is YTM calculated?**
It's the rate that makes the present value of cash flows equal the price – solved numerically.

**Why does YTM change?**
It moves with the bond's market price.

**What formula does the Yield to Maturity Calculator use?**
Exact: solve price = Σ C ÷ (1 + y/f)^t + F ÷ (1 + y/f)^N for y.