The Comprehensive Guide to

Passive Income Investing

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How to Become Financially Independent Through Passive Income Investing

Our yield to maturity calculator measures the annual return that an investor would receive if a particular bond was bought today and held until maturity.

To calculate a bond's yield to maturity, enter the:

  • bond's face value (also known as "par value")
  • coupon rate
  • number of years to maturity
  • frequency of payments, and
  • current price of the bond.

How to Calculate Yield to Maturity

For example, you buy a bond with a $1,000 face value and an 8% coupon for $900. The bond pays interest twice a year and matures in 5 years. You would enter:

  • "1,000" as the face value
  • "8" as the annual coupon rate
  • "5" as the years to maturity
  • "2" as the coupon payments per year, and
  • "900" as the current bond price.

Note: This YTM calculator assumes that the bond is not called prior to maturity. If the bond you're analyzing is callable, use our Yield to Call calculator to determine the bond’s value.