Bond Calculator: Yield, Price & YTM

Shift	New rate	Price	Change
-2%	3.50%	$1,126	+$176 (+18.5%)
-1%	4.50%	$1,040	+$90 (+9.5%)
0%	5.50%	$962	+$12 (+1.3%)
+1%	6.50%	$891	$-59 (-6.2%)
+2%	7.50%	$826	$-124 (-13.0%)

Why Bonds Aren't Just "Safe" Savings

The bond market's inverse relationship means that when interest rates rise, your existing bond's value falls. A 1% rate increase can wipe out years of coupon payments for long-term bonds.

Bond Risk Insights

Interest Rate Risk

Long-term bonds (20+ years) are much more volatile than short-term bonds. A 30-year Treasury can lose 20%+ of its value if rates rise 2%.

Credit risk

Corporate bonds carry credit risk. A bond's yield reflects both interest rate risk and the issuer's creditworthiness. High yield = higher risk.

Inflation drag

Fixed coupon payments lose purchasing power in high-inflation environments. A 5% yield with 3% inflation means only 2% real return.

Price-Yield Inverse

When market rates rise, bond prices fall so yields match. When rates fall, existing bonds with higher coupons become more valuable.

Bonds in 2026: Understanding Price-Yield Dynamics

A 4% 30-year Treasury at par loses about 15% of its market value if rates rise just one percentage point. A 5-year Treasury under the same shock loses around 4%. Duration is why bond risk depends as much on maturity as on credit quality.

What This Calculator Does

A bond's price and its yield move in opposite directions: when rates climb, prices on existing bonds fall to keep effective yields competitive with new issues. The calculator works in either direction. Plug in a target yield to maturity and it returns the fair price; plug in the current market price and it returns the YTM. It handles coupon-paying bonds (annual or semi-annual) and zero-coupon bonds, with current yield, total coupon payments over the holding period, and a premium/par/discount classification alongside the main result.

What it outputs:

Bond price or YTM (whichever you solve for), current yield, total interest payments over the holding period, and whether the bond trades at a premium, at par, or at a discount relative to face value.
What it does not do:

It does not account for credit risk, call provisions, inflation-adjusted returns, or tax treatment of coupon income. Pricing assumes a clean price; accrued interest for trades between coupon dates is not calculated.

The Price-Yield Relationship Explained

Bond Price Formula

Bond price is the present value of future coupon payments plus face value. For a bond with coupon C, face value F, yield y, and n periods:

P = \sum_{t=1}^{n} \frac{C}{(1+y)^t} + \frac{F}{(1+y)^n}

YTM (yield to maturity) is the rate y that makes this equal to the market price.

When Rates Rise:

New bonds

offer higher coupons, making existing bonds less attractive.
Bond prices fall

until their yield matches the new market rate.
Long-term bonds

suffer the most, as they're locked into lower rates for decades.

When Rates Fall:

Existing bonds

with higher coupons become more valuable.
Bond prices rise

as investors pay a premium for above-market yields.
Premium bonds

trade above face value, but you'll face a capital loss at maturity.

Bond Calculator FAQ

Why do bond prices fall when interest rates rise?

When market interest rates increase, newly issued bonds offer higher coupon payments. Your existing bond with a lower coupon becomes less attractive, so its price must fall until its yield matches the new market rate. This is the fundamental inverse relationship in bond markets.

What is the difference between coupon rate and yield?

The coupon rate is the fixed annual interest payment as a percentage of face value. Yield (YTM) is your actual return, accounting for the price you paid. If you buy a bond at a discount, your yield exceeds the coupon rate. If you pay a premium, your yield is lower than the coupon rate.

Is a bond's YTM the same as its annual return?

YTM assumes you hold the bond to maturity and reinvest all coupon payments at the same YTM rate. Your actual annual return may differ if you sell early or reinvest at different rates. YTM is the best estimate of total return if held to maturity.

What happens if I sell a bond before maturity?

Selling before maturity exposes you to interest rate risk. If rates have risen, you'll likely sell at a loss. If rates have fallen, you may realize a capital gain. The bond's price will reflect current market rates, not the original coupon rate.

What is a 'Zero-Coupon' bond?

Zero-coupon bonds pay no periodic interest. Instead, they're sold at a deep discount to face value. Your return comes entirely from the price appreciation to face value at maturity. These bonds are the most sensitive to interest rate changes.

What is the difference between clean price and dirty price?

The clean price is the bond's market price excluding accrued interest. The dirty price (also called invoice price) is the clean price plus accrued interest, this is what you actually pay when buying a bond between coupon dates. Bond markets typically quote clean prices, but you pay the dirty price.

What are day-count conventions?

Day-count conventions are rules for calculating the number of days in interest periods. Actual/Actual (used for U.S. Treasuries) uses real calendar days. 30/360 (used for corporate bonds) assumes 30 days per month. The convention affects accrued interest calculations when bonds are traded between coupon dates.

Sources & citations

References used for the calculation method and definitions. Links open in a new tab when available.

[1]

FINRA – Bonds and Fixed Income

FINRA guide covering bond pricing, yield to maturity, credit risk, and day-count conventions for individual investors.

Financial Estimation Note

General Projections: Results are mathematical estimates based on the rates and formulas currently loaded for this tool, including year-specific tax data where noted. They are intended for high-level planning only.

No Advice Provided: This site does not provide financial, tax, or legal advice. Using this tool does not create a client-advisor relationship with CalcRegistry.

Confirm Numbers: Financial laws change frequently. Please verify all results with a qualified professional (CPA, Financial Planner, or Lawyer) before making significant financial decisions.

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