Yield to Maturity Calculator

Use our free yield to maturity (YTM) calculator to compute the total return anticipated on a bond held until maturity. Enter the bond's face value, coupon rate, market price, and time to maturity for a complete analysis.

Financial

Currency

Face Value (Par Value)

Coupon Rate (%)

Market Price

Years to Maturity

years

Coupon Payments per Year

Formula

Yield to maturity (YTM) is the total return anticipated on a bond if held until maturity. It accounts for all coupon payments and the difference between the purchase price and face value. YTM is the most comprehensive measure of bond return.

YTM â‰ˆ Approximation via iteration of bond pricing formula

Percentage: The percentage value you want to apply

Number: The original number or value

Result: The calculated result

How It Works

1Enter the bond's face value and coupon rate.
2Enter the market price paid for the bond.
3Set the years to maturity and payment frequency.
4The calculator iteratively finds the YTM that equates the price to the present value of cash flows.

Examples

$1,000 bond, 5% coupon, $950 price, 10yr, semi-annual

1.Coupon per period = $1,000 Ã— 5% / 2 = $25
2.Current yield = $50 / $950 = 5.26%
3.YTM â‰ˆ 5.63% (higher than current yield due to discount)

Result: 5.625%

Frequently Asked Questions

Yield to maturity is the total return expected on a bond if held to maturity. It includes all coupon payments and the capital gain or loss from the difference between purchase price and face value.

Current yield only considers the annual coupon relative to the market price. YTM also accounts for the time value of money and the capital gain/loss at maturity.

When a bond is priced at a discount (< face value), YTM > coupon rate. When at a premium (> face value), YTM < coupon rate. When at par (= face value), YTM = coupon rate.

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Yield to Maturity Guide

CalculateMe Team

Last updated: 2026-07-16

Frequently Asked Questions

Yield to maturity is the total return expected on a bond if held to maturity. It includes all coupon payments and the capital gain or loss from the difference between purchase price and face value.

Current yield only considers the annual coupon relative to the market price. YTM also accounts for the time value of money and the capital gain/loss at maturity.

When a bond is priced at a discount (< face value), YTM > coupon rate. When at a premium (> face value), YTM < coupon rate. When at par (= face value), YTM = coupon rate.

Yield to Maturity Calculator

Formula

How It Works

Examples

$1,000 bond, 5% coupon, $950 price, 10yr, semi-annual

Frequently Asked Questions

What is YTM?

How does YTM differ from current yield?

What is the relationship between YTM and bond price?

Related Calculators

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Yield to Maturity Calculator

Formula

How It Works

Examples

$1,000 bond, 5% coupon, $950 price, 10yr, semi-annual

Frequently Asked Questions

What is YTM?

How does YTM differ from current yield?

What is the relationship between YTM and bond price?

Related Calculators

Related Articles