Bond Price Calculator
Bond fair value.
Calculate bond price as the present value of its coupon stream plus face value, given face value, coupon rate, market yield, and years to maturity.
What this tool does
Bond price equals the present value of its remaining coupon payments plus the present value of the face value at maturity, all discounted at the market yield. This calculator takes the face value, annual coupon rate, market yield, years to maturity, and payment frequency to compute the fair value of a bond at a given point in time. The result shows what the bond's cash flows are theoretically worth in today's terms. Market yield is the primary driver of price movement—as yields rise, bond prices fall, and vice versa. A typical scenario involves comparing a bond's market price to its calculated fair value. The calculator assumes fixed coupon payments and does not account for credit risk, call features, or tax treatment. Results are for illustration purposes.
Quick answer: with the default values, the result is $925.61 (Bond Price). Adjust the values below for your own figures.
Enter Values
People also use
Investing
Convertible Bond Calculator
Work out whether a convertible bond is worth more as a bond or converted into shares. Enter face value, conversion ratio and share price.
Investing
Bond Duration Calculator
Calculate bond Macaulay and Modified duration to gauge price sensitivity to interest rate changes — the bond investor's risk metric.
Investing
Bond Yield vs Inflation Calculator
Calculate real bond yield by adjusting nominal yield for inflation. Enter nominal bond yield to see real yield: nominal bond yield adjusted for inflation.
Formula Used
Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
Bond price calculator computes fair value as the present value of future cash flows: coupon payments plus return of face value at maturity. Formula: PV = Σ(coupon / (1+y)^t) + face / (1+y)^n. When market yield exceeds coupon rate, bond trades at discount (below face value). When yield is below coupon, bond trades at premium.
Example: 1,000 face value bond, 5% coupon (50/year, paid 25 semi-annually), 6% market yield, 10 years to maturity. PV of 20 coupon payments at 3% per period + PV of 1,000 face at 3% over 20 periods ≈ 926. Bond trades at 74 discount because market demands higher yield than coupon offers.
Bond pricing inversely related to interest rates: rates up = prices down, rates down = prices up. Duration measures sensitivity (longer maturity = more sensitive). Convexity measures curvature of price-yield relationship. Important: the calculation assumes you hold to maturity. Sell early and you take market price - which can be much different from purchase price.
A worked example
With the defaults: face value of 1,000, annual coupon rate of 5%, market yield of 6%, years to maturity of 10 years. The tool returns 925.61.
What moves the number most
The result responds to Face Value (par), Annual Coupon Rate %, Market Yield %, Years to Maturity, and Payments Per Year.
The formula behind this
Sum of present values of all coupon payments plus present value of face value at maturity.
£1,000 face, 5% coupon, 6% yield, 10y = $925.61.
Inputs
| Face Value | $1,000.00 |
|---|---|
| Discount (vs face) | -$74.39 |
| Coupon Payment | $25.00 × 20 |
| Total Received (coupons + face) | $1,500.00 |
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
This calculator computes bond price by discounting all future cash flows to present value. It calculates the present value of each coupon payment by dividing the periodic coupon amount by the market yield raised to the power of the payment period, then sums these values. It adds the present value of the face value, discounted at maturity using the same yield rate. The model assumes a constant market yield throughout the bond's life, coupon payments occur at regular intervals as specified, and the bondholder holds the bond until maturity. It does not account for credit risk, liquidity premiums, embedded options, taxes, transaction costs, or changes in market conditions.
Frequently Asked Questions
Why bonds trade above/below face?
Bond duration?
YTM vs current yield?
Credit risk impact?
Related Calculators
Convertible Bond Calculator
Work out whether a convertible bond is worth more as a bond or converted into shares. Enter face value, conversion ratio and share price.
Bond Duration Calculator
Calculate bond Macaulay and Modified duration to gauge price sensitivity to interest rate changes — the bond investor's risk metric.
Bond Yield vs Inflation Calculator
Calculate real bond yield by adjusting nominal yield for inflation. Enter nominal bond yield to see real yield: nominal bond yield adjusted for inflation.
More Investing Calculators
Investing
100 Minus Age Asset Allocation Calculator
Calculate stock-vs-bond allocation using the 100-minus-age rule of thumb — see the suggested percentage split for any age you put in.
Investing
Active vs Passive Investing Calculator
Compare active versus passive investing over the long run. See how a percentage point of extra fees compounds into a wealth gap over decades.
Investing
Annuity Present Value Calculator
Calculate the present value of an ordinary annuity from regular payments, periodic rate, and the number of periods until the stream ends.
Investing
APR to APY Calculator
Convert APR to APY for any compounding frequency to see the true effective annual yield — what you actually earn (or pay) on a given quoted rate.
Investing
Asset Allocation Calculator
Calculate suggested portfolio asset allocation by age and risk tolerance (stocks/bonds/cash). Enter risk tolerance 1-10 to see suggested stock and bond.
Investing
Asset Allocation Drift Calculator
Calculate drift between current and target asset allocation to decide if rebalancing is needed. Enter equity to see drift percentage and rebalance flag.
Explore Other Financial Tools
Business & Startup
Employee Cost Calculator
Calculate total cost of an employee including benefits, workspace, equipment, and training — the real number behind the base salary line item.
Mortgage
Bridging Loan Calculator
Calculate the total cost of a short-term bridging loan including monthly interest and arrangement fees over a chosen exit timeline.
E-commerce & Marketplace
App Store Fee Calculator
Work out app store commission on annual revenue, comparing the standard rate against the reduced small-business and subscription rates.
Spotted something off?
Calculations or display — let us know.