Quick answer
Yield to maturity is the discount rate y that makes the present value of a bond's cash flows equal its price. A $1,000 bond with a 5% semi-annual coupon, 10 years to maturity and a price of $950 has a YTM of 5.6617% and a current yield of 5.2632%.
Enter the price, face value, coupon rate, years and coupon frequency. The calculator returns YTM and current yield.
Related tools: Bond Price Calculator: Price of a coupon bond from its yield to maturity. Dividend Yield Calculator: Annual dividend as a percentage of the share price. Percent Yield Calculator: Percent yield of a reaction.
How to use the Yield to Maturity Calculator
- Enter market price ($) (above 0).
- Enter face value ($) (above 0).
- Enter annual coupon rate (%) (between 0 and 100).
- Enter years to maturity (between 0 and 100).
- Choose coupons per year: Annual and Semi-annual.
- Press Calculate to see the result, and use Reset to start again.
| Input | What to enter | Allowed values |
|---|---|---|
| Market price | A number, in $ | > 0 |
| Face value | A number, in $ | > 0 |
| Annual coupon rate | A number, in % | ≥ 0, ≤ 100 |
| Years to maturity | A number | > 0, ≤ 100 |
| Coupons per year | Choose one: Annual; Semi-annual | Starts at Semi-annual |
Formula and method
Formula
Find y such that price = Σ c ÷ (1 + y÷f)ᵗ + face ÷ (1 + y÷f)ⁿ; YTM = y
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
Solved by bisection on a coupon date; years × frequency must be a whole number.
Worked examples
These examples are verified: each one is an automated test case that the live calculator must reproduce exactly.
Example 1
Inputs: Market price = 950; Face value = 1000; Annual coupon rate = 5; Years to maturity = 10; Coupons per year = Semi-annual.
| Result | Value |
|---|---|
| Yield to maturity | 5.6617% |
| Current yield | 5.2632% |
Example 2
Inputs: Market price = 1050; Face value = 1000; Annual coupon rate = 6; Years to maturity = 5; Coupons per year = Annual.
| Result | Value |
|---|---|
| Yield to maturity | 4.8499% |
| Current yield | 5.7143% |
Example 3
Inputs: Market price = 1000; Face value = 1000; Annual coupon rate = 4; Years to maturity = 8; Coupons per year = Semi-annual.
| Result | Value |
|---|---|
| Yield to maturity | 4% |
| Current yield | 4% |
The first line is the headline result (yield to maturity). Below it the yield to Maturity Calculator lists current yield, which describe the same case from other angles. IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
YTM versus current yield
Current yield is just annual coupon ÷ price: $50 ÷ $950 = 5.26%. YTM also counts the $50 gain as the price rises to par at maturity, so it is higher at 5.66%. A bond at a discount has YTM above its coupon rate.
Assumptions
YTM assumes you hold to maturity and reinvest coupons at the same rate. Years × coupons per year must be whole. It is solved numerically.
How the result changes with market price
Holding every other input at the first worked example, this table changes only market price. It shows how sensitive the answer is to that one value; each row was produced by running this calculator.
| Market price | Yield to maturity | Current yield |
|---|---|---|
| 475 | 15.4939% | 10.5263% |
| 950 | 5.6617% | 5.2632% |
| 1900 | -2.7553% | 2.6316% |
| 3800 | -10.3241% | 1.3158% |
What happens with invalid input
These messages are produced by the calculator itself, so you know what to fix.
- Years to maturity: entering "2.3" shows "Years × coupons per year must be a whole number." beside that field and no result.
- Market price: entering "0" shows "Market price must be greater than 0." beside that field and no result.
Choosing between the Yield to Maturity Calculator and similar calculators
Each row shows what a related calculator on this site asks for and what it returns, so you can pick the one that matches your question.
| Calculator | You enter | It returns |
|---|---|---|
| [Bond Price Calculator](/finance/bond-price-calculator/) | face value, annual coupon rate and yield to maturity | Bond price |
| [Dividend Yield Calculator](/finance/dividend-yield-calculator/) | annual dividend per share and share price | Dividend yield |
| [Percent Yield Calculator](/science/percent-yield/) | actual yield and theoretical yield | Percent yield |
| [Rental Yield Calculator](/real-estate/rental-yield-calculator/) | monthly rent and property price | Gross yield |
| [Coffee Extraction Yield Calculator](/cooking/coffee-extraction-ratio-calculator/) | coffee dose, beverage weight and tDS | Extraction yield |
Background: personal finance estimates
Financial calculators project from the numbers you give them. Long-range tools depend on guesses about returns and tax rates that are unlikely to hold exactly, payoff tools assume a fixed payment and rate, and tax or salary results depend on the tax year, filing status and country. Official calculators say their output is for reference only.
For decisions that matter, use conservative inputs and check the figures against your lender, plan documents or a qualified adviser.
Assumptions and limitations
- Years × coupons per year must be whole
Results are estimates for planning, not financial advice. Lender terms, fees, taxes and rounding rules can change real figures, so confirm important numbers with your lender or a licensed adviser.
If a required value is empty, not a number, or outside its allowed range, the form marks that field with a message and shows no result instead of a misleading number. The automated checks deliberately try invalid entries for years to maturity and market price to confirm this.
Frequently asked questions
Why do prices and yields move opposite?
A fixed coupon is worth less when new bonds pay more.
What is par?
The bond's face value.
Is YTM the actual return?
Only if held to maturity under its assumptions.
What does the Yield to Maturity Calculator calculate?
Yield to maturity of a coupon bond from its market price. It returns Yield to maturity and Current yield.
What formula does the Yield to Maturity Calculator use?
Find y such that price = Σ c ÷ (1 + y÷f)ᵗ + face ÷ (1 + y÷f)ⁿ; YTM = y. Solved by bisection on a coupon date; years × frequency must be a whole number.
What do I need to enter in the yield to Maturity Calculator?
You enter Market price ($), Face value ($), Annual coupon rate (%), Years to maturity and Coupons per year.
How is the result rounded or limited?
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice. Years × coupons per year must be whole.
What does the “Coupons per year” option change?
It sets how the yield to Maturity is worked out. The choices are Annual and Semi-annual.
What is an example of a yield to Maturity result?
With market price 950, face value 1000, annual coupon rate 5, years to maturity 10 and coupons per year Semi-annual, the yield to maturity is 5.6617%.
Can I rely on this calculator for a decision?
Results are estimates for planning, not financial advice. Lender terms, fees, taxes and rounding rules can change real figures, so confirm important numbers with your lender or a licensed adviser. For this calculator in particular: Years × coupons per year must be whole.
Related calculators
- Bond Price Calculator — Price of a coupon bond from its yield to maturity.
- Dividend Yield Calculator — Annual dividend as a percentage of the share price.
- Percent Yield Calculator — Percent yield of a reaction.
- Rental Yield Calculator — Gross and net rental yield on a property.
- Coffee Extraction Yield Calculator — Extraction yield from dose, beverage weight and TDS.
- Auto Loan Calculator — Monthly car payment after down payment and trade-in.
Sources
- Standard time-value-of-money relations (e.g. Brealey, Myers & Allen, Principles of Corporate Finance)
Content last reviewed 2026-11-04. Formulas and worked examples are checked by automated tests against independently computed values.