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Yield to Maturity Calculator

Finance & Investment

Solve YTM from purchase price, coupon and maturity

Quick Answer

Yield to Maturity Calculator: Solve YTM from purchase price, coupon and maturity. Yield to Maturity Calculator uses standard finance formulas to compute accurate results instantly.

Bond inputs

Yield to maturity (annualized)6.1932%
Current yield5.2632%
Total coupons250
Principal + coupons at maturity1250
Total holding return300
Price vs faceDiscount purchase: YTM > coupon rate

Steps

  1. 1Coupon per period = face × rate ÷ m = 1000 × 5% ÷ 1 = 50; N = 5 × 1 = 5 periods
  2. 2Solve P = C·[1 − (1+y)⁻ᴺ]/y + F·(1+y)⁻ᴺ = 950 by bisection → periodic yield y = 6.193228
  3. 3Annualized YTM = y × m = 6.193228 × 1 = 6.1932%
  4. 4Current yield = annual coupon ÷ price = 50 ÷ 950 = 5.2632%
  • YTM is the single discount rate equating the purchase price with all remaining coupons plus face value — the annualized return if held to maturity.
  • Price > face (premium) → YTM below coupon; price < face (discount) → YTM above coupon; at par they are equal.
  • Current yield = annual coupon ÷ market price, ignoring the principal gain/loss at maturity — YTM is the more complete measure.
  • Assumes no default, coupons reinvested at YTM, and ignores taxes and transaction costs. Zero-coupon bonds (coupon = 0) use YTM = (F/P)^(1/n) − 1.

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How to Use

  1. Enter amounts and terms: fill principal, rate and period in the Yield to Maturity Calculator (defaults work for a quick try).
  2. Instant results: key figures and cost breakdown update live as you type.
  3. Compare scenarios: tweak any parameter to compare costs and returns across plans.
  4. Copy key numbers: one-click copy for records or sharing with your advisor.

Key Points

  • Yield to Maturity Calculator is a free online finance tool — open and use, no sign-up.
  • All calculations run locally in your browser; your data never leaves the device.
  • Key capability: Solve YTM from purchase price, coupon and maturity.
  • Results come with formulas and reference tables so you can verify every number.

Formula & How It Works

Yield to Maturity Calculator formula

Yield to Maturity Calculator uses standard finance formulas to compute accurate results instantly.

FAQ

How do I use the Yield to Maturity Calculator?
Open the page and fill in the input fields — results update automatically. Solve YTM from purchase price, coupon and maturity.
Are the results accurate?
Yes. Standard financial formulas and published rate data are used. For official figures, consult your financial institution.
Is it free? Do I need to sign up?
Completely free. No registration, login or download required.
Can I use the results for financial decisions?
Results are for reference. Consult a licensed financial advisor before major decisions.
Does it work on mobile?
Yes. Fully responsive on phones, tablets and desktops.

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Source & Updates

Based on published rate tables and standard financial formulas. Last updated: 2025-07

Authoritative sources:

Last updated:

Formulas and content on this page are reviewed by the YiJianSuan team. For reference only — official sources prevail.

Maintained and periodically reviewed by the YiJianSuan editorial team — review process in ourEditorial Policy.

Cite this page: YiJianSuan. Yield to Maturity Calculator[EB/OL]. https://www.yijiansuan.com/en/c/finance/bond-ytm

Results provided by this tool are for reference only and do not constitute professional advice.