Bond Current Yield Calculator
A bond's current yield tells you the cash income it pays each year measured against what the bond costs to buy today. The coupon rate is fixed against the bond's face value, so a 1,000 bond with a 5 percent coupon always pays 50 dollars a year. What changes is the market price, and that is where current yield comes in: it divides that fixed coupon by the price you would actually pay, giving the true running return on your money. When a bond trades below its face value, the same fixed coupon becomes a larger share of the lower price, so the current yield rises above the coupon rate; when it trades above par, the reverse happens. Enter the face value, the coupon rate and the current market price to see both the annual coupon in dollars and the current yield as a percentage. Note that current yield ignores any gain or loss at maturity, so it is not the same as yield to maturity. The method follows the standard bond definitions explained by the US Securities and Exchange Commission on its Investor.gov education site. Every number here is computed deterministically from the formula shown below, with a worked example that reconciles exactly to the default inputs.
A bond's current yield is annual coupon / current price. A $1,000 bond with a 5% coupon pays $50 a year; at a price of $950 the current yield is 5.26%.
Current yield formula
annual coupon = face value x coupon rate
current yield (%) = annual coupon / current price x 100
face value = par value repaid at maturity
current price = price the bond trades at now
First multiply the face value by the coupon rate to find the fixed dollar coupon paid each year. Then divide that coupon by the bond's current market price and multiply by 100 to get the current yield as a percentage of what you would pay today.
Worked example
A bond has a face value of 1,000, a coupon rate of 5%, and currently trades at a price of 950.
- Annual coupon = 1,000 x 5% = 50.00
- Current yield = 50 / 950 = 0.0526
- Current yield as a percentage = 0.0526 x 100 = 5.26%
The bond pays 50.00 a year and yields 5.26% at a price of 950, above its 5% coupon rate because it trades below face value. These are the calculator's default inputs, so the result above matches the widget exactly.
Current yield at common prices
This table shows the current yield for a 1,000 face value bond with a 5% coupon (50 a year) at different prices.
| Current price | Current yield |
|---|---|
| $900 | 5.56% |
| $950 | 5.26% |
| $1,000 | 5.00% |
| $1,050 | 4.76% |
| $1,100 | 4.55% |
Bond and yield concepts: US Securities and Exchange Commission, Investor.gov.
Bond current yield calculator: 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, expressed as a percentage. It measures the cash return you get right now relative to what you would pay for the bond today. Unlike the coupon rate, which is fixed against the face value, current yield moves as the bond's market price rises or falls.
How does current yield differ from yield to maturity?
Current yield only counts the annual coupon against today's price and ignores any gain or loss when the bond matures at face value. Yield to maturity is more complete: it includes that final difference between purchase price and face value, spread over the years remaining. For a bond bought below face value, yield to maturity is higher than current yield.
Why is current yield higher when a bond trades below par?
The coupon payment is fixed in dollars, set by the coupon rate against the face value. If you can buy the bond for less than its face value, you still receive the same dollar coupon, so that fixed income represents a larger percentage of the lower price you paid. A bond bought above par has a current yield below its coupon rate for the same reason.
What is the current yield formula?
Annual coupon = face value times the coupon rate. Current yield = annual coupon divided by the current market price, times 100. For example, a 1,000 face value bond with a 5 percent coupon pays 50 a year; at a price of 950 the current yield is 50 divided by 950, which is 5.26 percent.
Official sources
- Bond basics, coupons and yield concepts: US Securities and Exchange Commission, Investor.gov. As at 24 June 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 24 June 2026. See our methodology. This is general information, not financial, tax, legal or investment advice.