Bond Yield Calculator
Find a bond's current yield and annual coupon income from its price and coupon rate.
How to use the Bond Yield Calculator
- Enter the bond's face (par) value.
- Enter its coupon rate as a percentage.
- Enter the price you paid for the bond.
- See the current yield and annual coupon income.
Current yield = (Face value × coupon rate) ÷ Price paid × 100
About the Bond Yield Calculator
A bond pays a fixed coupon based on its face value, but you rarely pay exactly face value for it — and that gap is what makes yield interesting. This calculator multiplies the face value by the coupon rate to find the annual income, then divides by the price you actually paid to give the current yield. Buy a bond below face value and your yield is higher than the coupon rate; buy it above, and it is lower. The tool also flags whether you bought at a discount, at par, or at a premium.
Current yield is the quick, intuitive measure of a bond's income return, and it moves inversely to price: as bond prices fall, yields rise, and vice versa. It is the number to reach for when comparing the income of bonds bought at different prices, or judging what a bond pays relative to its cost today.
What current yield does not capture is the capital gain or loss you lock in by holding a discounted or premium bond to maturity — that fuller measure is the yield to maturity (YTM), which also accounts for getting face value back at the end. For growing coupon income reinvested over time, use the compound interest calculator, and for stock income the dividend yield calculator.
Frequently asked questions
What is the difference between coupon rate and yield?
The coupon rate is fixed against the face value. The current yield is the same coupon measured against the price you actually paid, so it is higher when you buy below face value and lower when you buy above.
What does buying at a discount or premium mean?
A discount means you paid less than face value, which raises your yield; a premium means you paid more, which lowers it. At par, price equals face value and the yield equals the coupon rate.
Is this yield to maturity?
No. This is current yield, based only on income versus price. Yield to maturity also includes the gain or loss from receiving face value at the end, so it differs for bonds bought above or below par.