Calculate bond yield to maturity instantly and compare returns. Discover how this powerful, stress-free tool can sharpen your investment decisions.
Ready to find out how much your bond is really earning?
Yield to Maturity (YTM) is the total expected return on a bond if held until maturity, incorporating both interest payments and capital gains or losses.
To calculate YTM, solve the equation:
Price = C * (1 - (1 + r)^-n)/r + F / (1 + r)^nWhere:
C = annual coupon payment
F = face/par value
n = years to maturity
r = yield to maturity
This equation is solved iteratively as it cannot be rearranged algebraically to isolate r.
YTM = [(Face / Price)^(1/n)] - 1Coupon / Price, as there's no maturityAn investor buys a bond with a 7% coupon, 8-year maturity, at $920. The YTM is calculated at 8.41%. Six months later, due to interest rate changes, the bond rises to $975, dropping YTM to 7.53%.
A 4% municipal bond purchased at $1,000 with 15 years to maturity results in a YTM of exactly 4.00% when held to maturity.
Start calculating your bond's true return now — and make every investment decision with confidence.
| Face Value | Coupon Rate | Years to Maturity | Market Price | YTM |
|---|---|---|---|---|
| $1,000 | 5% | 10 | $950 | 5.73% |
| $1,000 | 6% | 5 | $1,050 | 4.93% |
| $1,000 | 0% | 10 | $600 | 5.31% |
| $1,000 | 8% | 20 | $1,200 | 6.34% |
| $1,000 | 5% | ∞ (Perpetual) | $833.33 | 6.00% |