{
  "slug": "bond-yield",
  "title": "Bond Yield Calculator",
  "heading": "Bond Yield Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/bond-yield",
  "summary": "Current yield and approximate yield to maturity.",
  "description": "A bond bought below par yields more than its coupon; bought above par it yields less. This calculates current yield and an approximate yield to maturity, the standard comparison metric across bonds.",
  "formula": "Current yield = Annual coupon ÷ Price. Approx YTM = (Coupon + (Par − Price) ÷ Years) ÷ ((Par + Price) ÷ 2).",
  "dateModified": "2026-10-01",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=bond-yield",
  "inputs": [
    {
      "id": "par",
      "label": "Face value",
      "kind": "number",
      "hint": null,
      "default": 1000,
      "unit": "$",
      "min": 1,
      "max": null
    },
    {
      "id": "price",
      "label": "Purchase price",
      "kind": "number",
      "hint": null,
      "default": 940,
      "unit": "$",
      "min": 1,
      "max": null
    },
    {
      "id": "coupon",
      "label": "Coupon rate",
      "kind": "number",
      "hint": null,
      "default": 4.5,
      "unit": "%",
      "min": 0,
      "max": null
    },
    {
      "id": "years",
      "label": "Years to maturity",
      "kind": "number",
      "hint": null,
      "default": 8,
      "unit": null,
      "min": 0.5,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "ytm",
      "label": "Approx. yield to maturity",
      "format": "percent",
      "hint": null,
      "primary": true
    },
    {
      "id": "currentYield",
      "label": "Current yield",
      "format": "percent",
      "hint": null,
      "primary": false
    },
    {
      "id": "annualCoupon",
      "label": "Annual coupon income",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "totalCoupons",
      "label": "Total coupons to maturity",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "gain",
      "label": "Capital gain at maturity",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Face value: 1000 $",
      "Purchase price: 940 $",
      "Coupon rate: 4.5 %",
      "Years to maturity: 8"
    ],
    "outputs": [
      "Approx. yield to maturity: 5.41%",
      "Current yield: 4.79%",
      "Annual coupon income: $45.00",
      "Total coupons to maturity: $360.00",
      "Capital gain at maturity: $60.00"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter face value ($).",
      "Enter purchase price ($).",
      "Enter coupon rate (%).",
      "Enter years to maturity.",
      "Read your approx. yield to maturity on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "par": 600,
        "price": 560,
        "coupon": 2.6999999999999997,
        "years": 4.8
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "par": 1000,
        "price": 940,
        "coupon": 4.5,
        "years": 8
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "par": 1600,
        "price": 1500,
        "coupon": 7.2,
        "years": 12.8
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "How does the bond yield calculator work?",
      "a": "A bond bought below par yields more than its coupon; bought above par it yields less. This calculates current yield and an approximate yield to maturity, the standard comparison metric across bonds. The underlying maths is: Current yield = Annual coupon ÷ Price. Approx YTM = (Coupon + (Par − Price) ÷ Years) ÷ ((Par + Price) ÷ 2)."
    },
    {
      "q": "What do I need to enter?",
      "a": "4 values: face value, purchase price, coupon rate, and years to maturity. Each field starts with a sensible default, so you can change one number at a time and watch the result move."
    },
    {
      "q": "What does the approx. yield to maturity result mean?",
      "a": "It is returned as a percentage and updates live as you edit the inputs, so you can compare two or three versions of a scenario in a few seconds."
    },
    {
      "q": "Is this calculator free, and do I need an account?",
      "a": "Yes, it's free, and no account is required. Nothing you type is stored on our servers — the maths runs entirely in your browser."
    },
    {
      "q": "How accurate is the result?",
      "a": "It applies the standard formula exactly, so the arithmetic is precise. Results are estimates before tax, fees, and inflation unless an input explicitly covers them."
    },
    {
      "q": "Who is this tool for?",
      "a": "It's built for anyone comparing money scenarios before committing — budgeting a payment, sanity-checking a quote, or seeing what a change in rate or term actually costs."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/dividend-yield",
    "https://www.revenuelab.fyi/toolbox/investment"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Bond Yield Calculator (https://www.revenuelab.fyi/toolbox/bond-yield)"
}