Bond Yield Calculator
A bond's yield is the income it pays divided by what you paid for it. Because bonds trade at prices above or below their face value, two bonds with the same coupon can yield very different amounts, and the price move at maturity is part of the return.
Current yield
526.32%
- Annual coupon
- $50.00
- Total coupon income
- $250.00
- Gain or loss at maturity
- $50.00
Values update as you type. This calculator covers the single scenario its formula assumes — see Common Mistakes for what it leaves out.
The formula this calculator uses
Current yield = annual coupon / price paid
- coupon
- Annual interest paid on face value
- price
- What you paid for the bond
- yield
- Annual coupon divided by price, as a percentage
How to check the result by hand
- 1
Find the annual coupon
Multiply the face value by the coupon rate. A 1,000 bond at 5% pays 50 a year.
- 2
Identify the price paid
On the secondary market this is not the face value. A bond can trade at a discount or a premium to face.
- 3
Divide coupon by price
50 divided by 950 gives a current yield of 5.263%.
- 4
Multiply for total income
For a five-year holding, five coupons of 50 give 250 of income.
- 5
Compare with yield to maturity
A discount bond's yield to maturity exceeds its current yield because of the gain to face; a premium bond's is lower.
For worked examples, common mistakes and the limits of this formula, read the full How To Calculate Bond Yield page.