Yield to Maturity Calculator

Formula

The formula to calculate Yield to Maturity (YTM) is:

\[ \text{YTM} = \frac{\text{Coupon Payment} + \left(\frac{\text{Face Value} - \text{Price}}{\text{Years to Maturity}}\right)}{\frac{\text{Face Value} + \text{Price}}{2}} \]

Where:

\(\text{YTM}\) is the total return anticipated on a bond if the bond is held until the end of its lifetime
\(\text{Coupon Payment}\) is a periodic interest payment that the bondholder receives during the time between when the bond is issued and when it matures
\(\text{Face Value}\) is the nominal value or dollar value of a security stated by the issuer
\(\text{Price}\) is the quantity of payment or compensation given by one party to another in return for one unit of goods or services
\(\text{Years to Maturity}\) are the years required to mature the bond

Example Calculation

Let's assume the following values:

Coupon Payment = 20
Face Value = 800
Price = 900
Years to Maturity = 15

Using the formula:

\[ \text{YTM} = \frac{20 + \left(\frac{800 - 900}{15}\right)}{\frac{800 + 900}{2}} \]

Evaluating:

\[ \text{YTM} = \frac{20 + \left(-6.6667\right)}{850} \]

\[ \text{YTM} = \frac{13.3333}{850} \]

\[ \text{YTM} = 0.0156862745098039 \]

The Yield to Maturity is 0.0156862745098039.

Yield to Maturity Conversion Table

Coupon Payment	Face Value	Price	Years to Maturity	Yield to Maturity
10	700	800	10	0.000000000000
10	700	800	15	0.004444444444
10	700	800	20	0.006666666667
10	700	900	10	-0.012500000000
10	700	900	15	-0.004166666667
10	700	900	20	0.000000000000
10	700	1000	10	-0.023529411765
10	700	1000	15	-0.011764705882
10	700	1000	20	-0.005882352941
10	800	800	10	0.012500000000
10	800	800	15	0.012500000000
10	800	800	20	0.012500000000
10	800	900	10	0.000000000000
10	800	900	15	0.003921568627
10	800	900	20	0.005882352941
10	800	1000	10	-0.011111111111
10	800	1000	15	-0.003703703704
10	800	1000	20	0.000000000000
10	900	800	10	0.023529411765
10	900	800	15	0.019607843137
10	900	800	20	0.017647058824
10	900	900	10	0.011111111111
10	900	900	15	0.011111111111
10	900	900	20	0.011111111111
10	900	1000	10	0.000000000000
10	900	1000	15	0.003508771930
10	900	1000	20	0.005263157895
15	700	800	10	0.006666666667
15	700	800	15	0.011111111111
15	700	800	20	0.013333333333
15	700	900	10	-0.006250000000
15	700	900	15	0.002083333333
15	700	900	20	0.006250000000
15	700	1000	10	-0.017647058824
15	700	1000	15	-0.005882352941
15	700	1000	20	0.000000000000
15	800	800	10	0.018750000000
15	800	800	15	0.018750000000
15	800	800	20	0.018750000000
15	800	900	10	0.005882352941
15	800	900	15	0.009803921569
15	800	900	20	0.011764705882
15	800	1000	10	-0.005555555556
15	800	1000	15	0.001851851852
15	800	1000	20	0.005555555556
15	900	800	10	0.029411764706
15	900	800	15	0.025490196078
15	900	800	20	0.023529411765
15	900	900	10	0.016666666667
15	900	900	15	0.016666666667
15	900	900	20	0.016666666667
15	900	1000	10	0.005263157895
15	900	1000	15	0.008771929825
15	900	1000	20	0.010526315789
20	700	800	10	0.013333333333
20	700	800	15	0.017777777778
20	700	800	20	0.020000000000
20	700	900	10	0.000000000000
20	700	900	15	0.008333333333
20	700	900	20	0.012500000000
20	700	1000	10	-0.011764705882
20	700	1000	15	0.000000000000
20	700	1000	20	0.005882352941
20	800	800	10	0.025000000000
20	800	800	15	0.025000000000
20	800	800	20	0.025000000000
20	800	900	10	0.011764705882
20	800	900	15	0.015686274510
20	800	900	20	0.017647058824
20	800	1000	10	0.000000000000
20	800	1000	15	0.007407407407
20	800	1000	20	0.011111111111
20	900	800	10	0.035294117647
20	900	800	15	0.031372549020
20	900	800	20	0.029411764706
20	900	900	10	0.022222222222
20	900	900	15	0.022222222222
20	900	900	20	0.022222222222
20	900	1000	10	0.010526315789
20	900	1000	15	0.014035087719
20	900	1000	20	0.015789473684
25	700	800	10	0.020000000000
25	700	800	15	0.024444444444
25	700	800	20	0.026666666667
25	700	900	10	0.006250000000
25	700	900	15	0.014583333333
25	700	900	20	0.018750000000
25	700	1000	10	-0.005882352941
25	700	1000	15	0.005882352941
25	700	1000	20	0.011764705882
25	800	800	10	0.031250000000
25	800	800	15	0.031250000000
25	800	800	20	0.031250000000
25	800	900	10	0.017647058824
25	800	900	15	0.021568627451
25	800	900	20	0.023529411765
25	800	1000	10	0.005555555556
25	800	1000	15	0.012962962963
25	800	1000	20	0.016666666667
25	900	800	10	0.041176470588
25	900	800	15	0.037254901961
25	900	800	20	0.035294117647
25	900	900	10	0.027777777778
25	900	900	15	0.027777777778
25	900	900	20	0.027777777778
25	900	1000	10	0.015789473684
25	900	1000	15	0.019298245614
25	900	1000	20	0.021052631579
30	700	800	10	0.026666666667
30	700	800	15	0.031111111111
30	700	800	20	0.033333333333
30	700	900	10	0.012500000000
30	700	900	15	0.020833333333
30	700	900	20	0.025000000000
30	700	1000	10	0.000000000000
30	700	1000	15	0.011764705882
30	700	1000	20	0.017647058824
30	800	800	10	0.037500000000
30	800	800	15	0.037500000000
30	800	800	20	0.037500000000
30	800	900	10	0.023529411765
30	800	900	15	0.027450980392
30	800	900	20	0.029411764706
30	800	1000	10	0.011111111111
30	800	1000	15	0.018518518519
30	800	1000	20	0.022222222222
30	900	800	10	0.047058823529
30	900	800	15	0.043137254902
30	900	800	20	0.041176470588
30	900	900	10	0.033333333333
30	900	900	15	0.033333333333
30	900	900	20	0.033333333333
30	900	1000	10	0.021052631579
30	900	1000	15	0.024561403509
30	900	1000	20	0.026315789474

Yield to Maturity Calculator

Formula

Yield to Maturity Definition

Example Calculation

Yield to Maturity Conversion Table