Fixed income
Bond Calculator
Current yield and approximate yield to maturity. Move the sliders or type exact numbers — results update instantly.
Formula checked by Naman, Fistotex founderLast updated Free · No sign-up · Runs in your browser
Your inputs
Approximate YTM
7.98%
- Annual coupon
- ₹75
- Discount to face value
- ₹20
- Current yield
- 7.65%
Figures are estimates based on the inputs and assumptions shown. Actual outcomes will differ. This is not financial advice.
Guide
Bond Calculator: what it does and when to use it
A bond calculator shows the return a bond offers at its current market price. Current yield is the annual coupon divided by price; yield to maturity also counts the gain or loss as the price moves to face value at maturity.
Use it to compare government securities, corporate bonds and tax-free bonds on a like-for-like basis before buying on an exchange or bond platform.
How to use it: set each input with the slider or type an exact figure. Results, the chart and the shareable link update instantly.
- Face value
- ₹1,000
- Coupon rate
- 7.5%
- Market price
- ₹980
- Years to maturity
- 5 years
- Annual coupon
- ₹75
- Discount to face value
- ₹20
- Current yield
- 7.65%
- Approximate YTM
- 7.98%
Method
How this calculation works
The exact formula and assumptions behind the numbers above.
Formula
YTM ≈ [C + (F − P) ÷ n] ÷ [(F + P) ÷ 2]
C = annual coupon, F = face value, P = market price, n = years to maturity. An approximation of the exact yield.
Assumptions
- When price is below face value the bond trades at a discount and the YTM exceeds the coupon.
- When price is above face value it trades at a premium and the YTM is lower.
Questions
Frequently asked questions
Why does bond price move with interest rates?
When new bonds offer higher rates, existing lower-coupon bonds must fall in price to stay competitive — and vice versa.
What is duration?
A measure of how sensitive a bond's price is to rate changes. Longer-dated, lower-coupon bonds are more sensitive.
What is the difference between coupon rate and yield?
The coupon rate is fixed on the bond's face value. Yield depends on the price you pay, so buying below face value gives a yield above the coupon rate.
Is bond interest taxable in India?
Coupon income is usually taxed at your slab rate. Some tax-free bonds issued by public sector companies are exempt.
Disclaimer
This calculator is an educational tool. It provides estimates based on the inputs and assumptions shown, and does not constitute personalised financial, investment or tax advice. Actual returns, interest, taxes and fees will vary. Please consult a qualified professional before making financial decisions.