Bond Yield to Maturity (YTM) Calculator

Yield to maturity (YTM) is the discount rate that makes the present value of a bond's remaining coupons plus its face value equal to its current market price — the same relationship the Bond Price Calculator runs forward (yield → price), solved here in reverse (price → yield). Unlike bond price, there's no closed-form formula for that inverse, since it would require solving a high-degree polynomial for its root.

This calculator finds it numerically instead, with bisection: bond price is strictly decreasing as yield increases (a higher discount rate always lowers present value), so it repeatedly narrows a search range by checking the midpoint's price against your entered price and discarding whichever half can't contain the answer, converging to the yield within a tiny fraction of a percent after 200 steps.

Current yield (annual coupon ÷ price) is also shown for comparison — it only looks at the coupon income, while YTM additionally accounts for the built-in gain (buying below face value) or loss (buying above face value) as the price converges to face value by maturity.