Free bond price calculator
Calculate bond price, yield, and accrued interest — enter face value, coupon rate, market yield, and maturity to see the fair price, updated live, as you type.
On this page10 sections
Results are estimates. Consult a professional.
How the bond price calculator works
A bond's price is the present value of all its future cash flows — periodic coupon payments plus the face (par) value returned at maturity — each discounted at the current market yield. When the market yield equals the coupon rate the bond trades at par ($1,000). When yields rise above the coupon rate the bond trades at a discount; when yields fall below the coupon rate it trades at a premium.
The standard bond pricing formula discounts each coupon payment and the final principal repayment back to today using the yield per period. For annual coupons, the formula collapses the coupon stream into an annuity factor plus the present value of the lump-sum face value.
Worked example: 5% coupon bond priced at a 4% yield
Alex considers buying a bond with a $1,000 face value, a 5% annual coupon (paying $50/year), and 10 years to maturity. Current market yields for similar bonds have fallen to 4%, meaning new investors would accept a lower return — so this bond's higher coupon makes it worth more than par.
Bond prices at various coupon rates and market yields
The table below shows the price of a $1,000 face value bond with 10 years to maturity at three different coupon rates and three different market yields. All coupons are paid annually. Prices at or below par indicate a discount bond; prices above par indicate a premium bond.
| Coupon Rate | 3% Market Yield | 5% Market Yield | 7% Market Yield |
|---|---|---|---|
| 3% coupon | $1,000.00 | $845.57 | $719.04 |
| 5% coupon | $1,170.60 | $1,000.00 | $859.49 |
| 7% coupon | $1,341.21 | $1,154.43 | $1,000.00 |
Source: Standard bond pricing formula. $1,000 face, 10-year maturity, annual coupons. Prices are exact to the cent based on the formula above.
Tips for using the bond price calculator
Bond pricing looks mechanical, but a few conceptual traps trip up even experienced investors. Keep these principles in mind when interpreting the calculator's output.
- Price and yield move in opposite directions — When market yields rise, existing bond prices fall. This inverse relationship is the most fundamental rule in fixed income. If you buy at a premium and yields rise, you face both mark-to-market losses and a below-market coupon.
- Use semi-annual inputs for US Treasuries and corporate bonds — Most US bonds pay coupons semi-annually. Divide the annual coupon rate by 2, halve the annual yield, and double the years to get the correct price. Mixing annual and semi-annual inputs is a common error.
- Yield to maturity assumes reinvestment at the same rate — YTM calculations assume every coupon is reinvested at the same yield. In falling-rate environments, actual returns will be below the stated YTM; in rising-rate environments, above it.
- Duration tells you how sensitive the price is to yield changes — A bond with 10-year Macaulay duration loses roughly 10% in price for every 1% rise in yield (modified duration). Short-duration bonds are far less sensitive to rate moves.
- Call provisions change the effective maturity — Callable bonds may be redeemed early by the issuer, typically when rates fall. The calculator assumes the bond runs to stated maturity; for callable bonds, also price to the call date and use the lower of the two prices.
Accuracy and limitations
This calculator uses the standard present-value bond pricing formula and is accurate for plain-vanilla fixed-rate bonds with equal coupon periods and no embedded options. It does not account for accrued interest (the 'dirty price' vs. 'clean price' distinction), callable or putable bonds, floating-rate notes, zero-coupon bonds entered in annual-coupon mode, or bonds priced between coupon dates. For bonds with unusual structures or for transactions requiring settlement precision, use a dedicated fixed-income analytics platform.
Not financial advice — consult a financial professional for your specific situation.
Key bond pricing terms
About this bond price calculator
This calculator runs entirely in your browser — nothing you enter is sent to any server.
Part of our finance calculators suite — explore all calculators.