Bond YTM Calculator
Estimate a bond's approximate yield to maturity (YTM) from its face value, current price, coupon rate and years to maturity.
About the Bond YTM Calculator
Yield to maturity (YTM) is the total annualized return a bond would generate if held until it matures, factoring in coupon payments plus any gain or loss between the purchase price and face value.
Formula (approximation): YTM ≈ [C + (F − P) ÷ n] ÷ [(F + P) ÷ 2], where C is the annual coupon payment, F is face value, P is current price, and n is years to maturity.
This widely used approximation is accurate enough for quick comparisons, though the true YTM requires solving the bond price equation iteratively — the approximation tends to slightly overstate YTM for bonds trading at a discount and understate it for bonds trading at a premium.