Bond Calculator guide
Bond Calculator: Price, Yield and Duration
Use our bond calculator to work out a bond's price from its yield to maturity, or its yield from the price, with current yield and duration.
By the AllCalculator editorial teamUpdated 16 October 20261 min read
Bonds, including UK government gilts, pay regular coupons and return their face value at maturity. Their price moves with interest rates. Our Bond Calculator works out the price, yield and duration.
How to use the calculator (Bond Calculator)
- Choose to work out the price from the yield, or the yield from the price.
- Enter the face value, coupon rate and years to maturity.
- Choose how often coupons are paid. Gilts pay twice a year.
- Enter the yield or the price.
How it works
A bond's price is the present value of all its future coupons and its face value, discounted at the yield to maturity (YTM).
- Current yield = annual coupon ÷ price
- Duration measures how sensitive the price is to interest rates.
A worked example
With the calculator's default settings, a 10-year bond with a 4.25% coupon and a 4.6% yield is priced at 97.22 per 100 face value, a discount. Its modified duration of about 8 means its price would fall roughly 8% if yields rose by 1%.
Frequently asked questions
Why do bond prices fall when rates rise?
New bonds pay more, so existing bonds with lower coupons must be cheaper to compete.
Are gilts tax-free?
Gains on gilts are free of Capital Gains Tax, but the coupons are taxable as savings income.
Sources and further reading
Links open official and independent websites in a new tab.
This guide is general information to help you understand your options. It isn't financial, tax, legal or building advice and doesn't take your personal circumstances into account. Figures were checked when the guide was last updated and can change, so confirm anything important with GOV.UK, HMRC, a regulated adviser or a qualified tradesperson.