What is Yield to Maturity?
Yield to Maturity (YTM) is the total annualized return an investor can expect if they buy a bond at its current market price and hold it until maturity, receiving all coupon payments and the face value at the end.
How it’s calculated
YTM is the discount rate that makes the present value of all future coupon payments plus the face value equal to the bond’s current market price. Because this equation can’t be solved directly with simple algebra, the calculator uses an iterative search (bisection method) to find the rate that satisfies the bond pricing equation.
This calculator is for general financial education and analysis practice, not investment advice. It assumes the bond pays regular fixed coupons and is held to maturity with no default risk.
Last reviewed August 2026