About this calculator
Enter the price, face value, coupon rate, years left and payment frequency.
How to use it
- Enter the price you pay and the face value.
- Enter the coupon rate, years and payment frequency.
- Read the YTM and current yield.
The formula
Find y so that Σ coupon ÷ (1 + y)t + face ÷ (1 + y)n = price
- price
- what you pay
- y
- yield per period, ×payments a year for the yearly yield
Worked example
₹1,000 bond bought at ₹980, 7.5% coupon half-yearly, 5 years
- Yield to maturity = 7.99% a year.
- Current yield = 75 ÷ 980 = 7.65%.
- The ₹20 gain at maturity adds to the coupon return.
What the result means
Compare YTM, not coupon rate, across bonds. Check the issuer’s credit rating too: a higher yield often means more risk.
Assumptions
- Coupons are reinvested at the same yield.
Limitations
- Taxes and brokerage are not included.
- Credit risk is not modelled.
Frequently asked questions
What is the difference between YTM and coupon rate?
The coupon is fixed on face value; YTM is your actual return at the price you pay.
What is current yield?
The yearly coupon divided by the price, ignoring any gain or loss at maturity.
Is a higher YTM always better?
Not if it comes from a riskier issuer.
For information only. This calculator gives estimates based on the figures you enter and the assumptions listed above. It is not financial advice. Actual amounts depend on the lender’s or institution’s terms, fees, rounding and rate changes. Please confirm with them before you decide.
Last reviewed on 1 October 2026. Found a mistake? Tell us.