Bond Calculator
From face value, coupon, purchase price and remaining term, get the yield to maturity (YTM), current yield, total return and yearly coupon payments.
Full years from the last coupon date = number of coupons still to be paid.
Yield to Maturity (YTM)
4.13 % p.a.
Current Yield
3.16 % p.a.
Total Return
€200.00
Return Breakdown
| Year | Coupon | Cum. Coupons | Capital Gain Share |
|---|---|---|---|
| 1 | €30.00 | €30.00 | €10.00 |
| 2 | €30.00 | €60.00 | €20.00 |
| 3 | €30.00 | €90.00 | €30.00 |
| 4 | €30.00 | €120.00 | €40.00 |
| 5 | €30.00 | €150.00 | €50.00 |
The yield to maturity (YTM) is the rate at which the discounted coupons and redemption add up exactly to the purchase price incl. accrued interest (compound interest, annual coupons). A purchase price below 100% adds a capital gain at maturity. Taxes (German flat-rate tax on coupons and capital gains) are not deducted.
Note: These calculations are for informational purposes only and do not replace professional tax or financial advice. All information without guarantee.
FAQ
Frequently Asked Questions
What is a bond?
A bond is a debt security where you lend money to an issuer (government, company) for a fixed term. You receive regular interest payments (coupons) and the face value back at maturity.
How do interest rates affect bond prices?
Bond prices and interest rates move inversely. When interest rates rise, existing bonds with lower coupons become less attractive, and their market price falls. When rates fall, bond prices increase.
Are my entered amounts stored anywhere?
No. All calculations happen exclusively in your browser. Your inputs are never sent to our server or stored. You can safely enter sensitive financial data.
Guide
What is the Bond Calculator?
The bond calculator computes the yield (effective rate) of bonds, accounting for coupon, purchase price, term and redemption price.
How does the Bond Calculator work?
Enter the nominal value, coupon rate, purchase price and remaining term. The calculator determines the yield to maturity (exactly, by the present-value method with compound interest) and the current yield. If you also enter the last coupon date and the settlement date, it computes the accrued interest on an act/act basis and includes it in the yield.
Key Data and Facts
Yield on 10-year German federal bonds: 3.6% (Bundesbank yield curve, 25 Sep 2026; August 2026 monthly average: 3.37%). Coupons and capital gains are subject to the 25% flat-rate withholding tax (Abgeltungsteuer) plus solidarity surcharge (26.375% in total, plus church tax if applicable). Accrued interest paid on purchase reduces that year's investment income. Accrued interest on federal bonds: act/act (actual interest days / days in the coupon period).
Step-by-Step Guide
How to calculate the bond yield step by step: 1. Enter the nominal value (face value): typically 1,000 EUR or 100 EUR. 2. Enter the coupon rate: the annual interest rate the bond pays (e.g. 2.5 %). 3. Specify the purchase price: as a percentage of the face value (e.g. 97 % = below par, 103 % = above par). 4. Enter the remaining term: years until the bond matures. 5. Calculate the Current Yield: coupon / purchase price x 100. 6. Calculate the Yield to Maturity (YTM): it accounts for the coupon plus the price gain/loss until maturity. Approximation formula: YTM = (coupon + (face value - purchase price) / remaining term) / ((face value + purchase price) / 2). 7. Note the accrued interest on purchase: the buyer pays the seller the interest since the last coupon date, for federal bonds on an act/act basis: face value × coupon × interest days / days in the coupon period (365 or 366). Example: German government bond, face value 10,000 EUR, coupon 2.5 %, purchase price 97 %, remaining term 5 years. Purchase price: 10,000 x 0.97 = 9,700 EUR. Annual coupon: 250 EUR. Price gain at maturity: 300 EUR. YTM by the approximation formula: (250 + 300/5) / ((10,000 + 9,700) / 2) = 310 / 9,850 = 3.15 %; exact (present-value method, as in the calculator): 3.16 %. Current Yield: 250 / 9,700 = 2.58 %. Purchase with settlement on 26 Sep 2026, last coupon on 15 Feb 2026: accrued interest 10,000 × 2.5 % × 223/365 = 152.74 EUR.
Calculation Example
German federal bond (Bundesanleihe), face value 10,000 EUR, coupon 2.5%, bought at 97%, 5 years to maturity. Purchase price: 9,700 EUR. Annual coupon: 250 EUR. YTM: 3.16% (approximation formula: 3.15%). Current yield: 2.58%.
Sources
Official sources
Calculations are based on applicable German laws and official data:
- Deutsche Bundesbank
- Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)
- Statistisches Bundesamt (Destatis)
Full methodology at Methodology.
Reviewed by Konstantin Iakovlev · Last updated:
Finance
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