Fixed income tool
Bond Yield Calculator
Estimate bond return based on nominal value, purchase price, annual coupon rate, days to maturity and tax rate.
Calculator
Bond yield calculator
Enter nominal value, purchase price, coupon rate, days to maturity and tax rate to estimate bond return.
Results are simple estimates. Coupon schedule, compound yield, tax rules and market conditions may change actual return.
Bond yield calculation formula
- Coupon income
- Nominal value × annual coupon rate × days to maturity / 365
- Maturity gain/loss
- Nominal value - purchase price
- Gross return
- Coupon income + maturity gain/loss
- Net return
- Gross return - estimated tax
- Net yield
- Net return / purchase price × 100
Example bond yield calculation
If a bond with 100,000 TRY nominal value is purchased for 95,000 TRY, annual coupon rate is 30%, days to maturity is 180 and tax rate is 10%, estimated coupon income is about 14,794.52 TRY. Maturity gain is 5,000 TRY, net return is about 17,815.07 TRY and net yield is about 18.75%.
Frequently asked questions
How is bond return calculated?
In a simple approach, coupon income and the difference between nominal value and purchase price are added. Estimated tax is then deducted to calculate net return.
What is nominal value?
Nominal value is the principal amount expected to be paid back at maturity.
Does this tool provide exact bond yield?
No. It provides an approximate calculation. Actual return may vary depending on coupon schedule, market price, taxes and compound yield.