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
| Field | What to enter |
|---|---|
| Face value | Amount in your currency |
| Bond price | Amount in your currency |
| Annual coupon rate | In % |
| Coupon frequency | Choose one: Annually, Semi-annually, Quarterly, Monthly |
| Years to maturity | A 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 value | Yield to maturity (YTM) (%) |
|---|---|
| 750 | 0.47 |
| 1,125 | 4.191 |
| 1,500 | 7.094 |
| 1,875 | 9.55 |
| 2,250 | 11.727 |
| 3,000 | 15.576 |
Formula
Exact: solve price = Σ C ÷ (1 + y/f)^t + F ÷ (1 + y/f)^N for yApproximation: YTM ≈ [C + (F − P) ÷ n] ÷ [(F + P) ÷ 2]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.
Frequently asked questions
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.