Bond Interest and Yield Calculator
See every interest payment a bond will make from the day you buy it, the accrued interest you pay, tax, current yield and yield to maturity. Any currency.
Works for any country and currency. In Kenya? Use the Kenya calculator, set up for CBK Treasury and infrastructure bonds.
| Price (100 per 100) | 10,000.00 |
|---|---|
| Accrued interest (0 days) | 0.00 |
| Each interest payment, before tax | 250.00 |
| Current yield | 5.00% |
| Gain at maturity (face value − price) | 0.00 |
| Tax on interest | 0.00 |
Payment schedule
| Date | Interest | Tax | Face value | You receive |
|---|---|---|---|---|
| 23 Apr 2027 | 250.00 | 0.00 | — | 250.00 |
| 23 Oct 2027 | 250.00 | 0.00 | — | 250.00 |
| 23 Apr 2028 | 250.00 | 0.00 | — | 250.00 |
| 23 Oct 2028 | 250.00 | 0.00 | — | 250.00 |
| 23 Apr 2029 | 250.00 | 0.00 | — | 250.00 |
| 23 Oct 2029 | 250.00 | 0.00 | — | 250.00 |
| 23 Apr 2030 | 250.00 | 0.00 | — | 250.00 |
| 23 Oct 2030 | 250.00 | 0.00 | — | 250.00 |
| 23 Apr 2031 | 250.00 | 0.00 | — | 250.00 |
| 23 Oct 2031 | 250.00 | 0.00 | 10,000.00 | 10,250.00 |
| Total | 2,500.00 | 0.00 | 10,000.00 | 12,500.00 |
How the calculator works
- Interest dates fall every 12, 6 or 3 months counted from the issue date, with the last payment on the maturity date, together with the face value.
- Each payment is face value × interest rate ÷ payments a year. Tax is taken from each payment.
- Accrued interest: buying between interest dates, you pay the seller the interest earned since the last payment (days since it ÷ days in the period × one payment). The next payment gives it back in full.
- Current yield is a year's interest ÷ the price. Yield to maturity is the yearly rate, compounded at each payment, at which every payment you'll receive is worth exactly what you pay today. It counts the gain or loss at maturity, so it's the figure to compare bonds with.
Buying at a price below 100 adds a gain at maturity; above 100, a loss. Either way the interest payments stay the same.
Estimates to help you plan, not financial or tax advice. Rates, conventions and tax rules change: check the figures against your own statement and your tax authority.
Frequently asked questions
How is bond interest calculated?
Each payment is the face value × the annual interest rate ÷ the number of payments a year. A 100,000 bond at 10% paying twice a year pays 5,000 every six months.
What is accrued interest?
When you buy a bond between interest dates, you pay the seller the interest earned since the last payment. You get it back in full at the next payment, so it isn't a cost, but it does add to what you pay today.
What is the difference between current yield and yield to maturity?
Current yield is one year's interest divided by the price. Yield to maturity also counts the gain or loss between the price and the face value you get back, and when each payment arrives, so it's the better figure for comparing bonds.
What does a price of 98 or 102 mean?
Bond prices are quoted per 100 of face value. At 98 you pay 98,000 for 100,000 of face value and gain 2,000 at maturity; at 102 you pay 102,000 and lose 2,000 at maturity.