Bond Yield to Maturity Calculator
Enter your bond's details to estimate its yield to maturity (YTM), the total return you can expect if you hold the bond until it matures.
About this calculator
Estimate a bond's yield to maturity using an iterative approximation based on face value, coupon rate, price, and years to maturity.
Frequently Asked Questions
What is yield to maturity?
YTM is the total annualized return an investor earns if a bond is held until it matures, factoring in coupon payments and any gain or loss from buying at a price different from face value.
Why use an iterative method?
YTM cannot be solved directly with algebra because it appears in multiple discounting terms, so calculators use iterative approximation (like bisection) to converge on the rate that sets the bond's present value equal to its price.
Does this account for semiannual coupons?
This simplified version assumes annual coupon payments. For semiannual bonds, divide the coupon rate and periods accordingly for a more precise result.