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Bond Equivalent Yield Calculator
Bond Equivalent Yield (BEY) annualizes the return on short-term discount securities like T-bills so they can be compared to coupon bonds.
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What is Bond Equivalent Yield?
Bond Equivalent Yield (BEY) converts the return on a discount security, like a Treasury bill purchased below face value, into an annualized yield that can be compared to yields on regular coupon-paying bonds.
How this calculator works
Enter the face value, purchase price, and days until maturity. The calculator applies the standard formula: BEY = [(Face Value – Purchase Price) / Purchase Price] x (365 / Days to Maturity), expressed as a percentage.
This is a standard fixed-income formula for general educational and planning purposes, not investment advice.
Last reviewed August 2026