Bond Calculator – Estimate Bond Price and Yield
Price a bond from its coupon, face value, maturity and market yield.
About the Bond Calculator
What is the Bond Calculator?
A bond calculator prices a bond by discounting its future coupon payments and face value back to today at the market yield.
Why use this calculator?
Bond prices move inversely to interest rates. Pricing a bond tells an investor whether it is cheap, expensive or fairly valued relative to current yields.
How to use it
- Enter the bond face value and coupon rate.
- Enter the years to maturity and the current market yield.
- Set how many coupons are paid each year.
- See the price, current yield and premium or discount.
Formula
Price = Σ coupon/(1+r)^k + face/(1+r)^n
Assumes a clean price with no accrued interest and a single flat yield curve.
Frequently Asked Questions
Why does a bond price move opposite to yields?
When yields rise, new bonds offer more, so existing fixed-coupon bonds must fall in price to compete. Falling yields do the reverse.
What is the difference between coupon and yield?
The coupon is the fixed interest the bond pays on its face value. Yield is the return you actually get at the price you pay.
What is compound interest?
Compound interest is interest earned on both your original money and on previously earned interest. Over time it can make savings grow much faster than simple interest.
What is the difference between nominal and effective return?
The nominal return ignores compounding within the year, while the effective (annualised) return accounts for it. The effective figure is usually higher and better reflects real growth.
How does inflation affect my returns?
Inflation erodes purchasing power. The real return is the nominal return minus inflation, so an investment can grow in dollars yet still lose value in what it can buy.
What rate of return should I assume?
A common long-term assumption for a diversified stock portfolio is about 6% to 8% per year after inflation, but returns vary and are never guaranteed.
Does this account for taxes and fees?
Unless stated, the tool shows pre-tax, pre-fee growth. Subtract your fund expense ratio and expected tax rate to estimate what you keep.
Is this calculator free to use?
Yes. Every calculator on this site is completely free, with no hidden fees, no subscriptions and no limits on how many times you can use it.
How accurate are the results?
We use standard, widely accepted formulas and calculate in your browser using double-precision arithmetic. Results are rounded for readability, so treat them as reliable estimates rather than a guarantee. Real-world factors can vary the true figure.
Can I add this calculator to my own website?
Yes. Open this calculator page and use the "Add to your website" box in the sidebar to copy a ready-made iframe snippet, then paste it into any HTML page.