Bond Current Yield Calculator
Find a bond's current yield from coupon and price.
Results update as you type.
This calculator is for illustrative purposes only. Actual rates, fees and terms vary by lender. Consult a qualified financial adviser before making borrowing decisions.
How it works
The current yield shown here is a bond's annual coupon payment expressed as a percentage of its current market price, telling you the income return you earn per dollar invested at today's price. It matters because bonds often trade above or below their face value, so the coupon rate printed on the bond — which is based on face value — no longer reflects the true income you get when you buy at a different price. This bond current yield calculator divides the annual coupon by the price you pay and multiplies by 100. When a bond trades below face value, at a discount, its current yield is higher than its coupon rate; when it trades above face value, at a premium, the current yield is lower. Investors use current yield to compare the income of bonds bought at different prices, to weigh a bond against other income sources, and as a quick read on income relative to cost. It is important to note what current yield leaves out: it measures only the coupon income relative to price and ignores any capital gain or loss you realize if you hold the bond to maturity and it repays face value. For that fuller picture, investors turn to yield to maturity. Treat current yield as a snapshot of income return, not the total return of holding the bond to the end.
Current yield = annual coupon payment ÷ bond price × 100
The annual coupon payment is the fixed cash a bond pays each year, set as a percentage of its face value. The current price is what the bond costs to buy in the market today, which may differ from face value. Dividing the annual coupon by the current price gives the income return per dollar actually invested, and multiplying by 100 makes it a percentage. Because the price is the denominator, buying at a discount raises the current yield above the coupon rate, while buying at a premium pushes it below.
Source:U.S. SEC — Investor.gov
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter annual coupon payment and current bond price.
- 2
Adjust the options
Fine-tune any options to match your situation.
- 3
Read your result
Current yield updates instantly as you type — no button to press.
Frequently asked questions
What is a bond's current yield?
Current yield is the annual coupon income a bond pays divided by its current market price, shown as a percentage. It tells you the income return you actually earn at the price you pay, rather than the coupon rate set against face value. Because bonds trade above or below face value, the current yield is often the more useful income figure when comparing bonds you might buy at differing market prices.
How does current yield differ from the coupon rate?
The coupon rate is fixed at issue and calculated on the bond's face value, so it never changes. The current yield is calculated on the bond's current market price, which fluctuates, so it changes as the price moves. When a bond trades at a discount below face value, its current yield exceeds the coupon rate; when it trades at a premium above face value, the current yield falls below the coupon rate.
What is the difference between current yield and yield to maturity?
Current yield measures only the coupon income relative to today's price and ignores any gain or loss from the price converging to face value at maturity. Yield to maturity accounts for that capital gain or loss plus the timing of all cash flows, giving the total annualized return if you hold the bond to maturity. Yield to maturity is more complete but more complex; current yield is a simpler income snapshot.
Why do bond prices and yields move in opposite directions?
A bond's coupon payments are fixed, so when its market price falls, those same payments represent a larger return on the lower price, pushing the yield up. When the price rises, the fixed payments are a smaller return on the higher price, pulling the yield down. This inverse relationship is fundamental to bonds, and it is why rising interest rates, which push new-bond yields up, tend to lower the prices of existing bonds.
Does current yield account for reinvested coupons or fees?
No. Current yield is a simple ratio of annual coupon income to price and assumes nothing about reinvesting the coupons, taxes or transaction costs. It also ignores any capital gain or loss at maturity. For a fuller measure of what you will actually earn, consider yield to maturity and factor in your tax situation and any fees. Use current yield as a quick income comparison, not a complete return calculation.