Bond Yield (YTM) Calculator
Compute yield to maturity from price, or price from yield, using the conventions Indian bonds trade on: 30/360 for G-secs, Actual/Actual for corporates, with clean/dirty price, accrued interest, duration and the full cashflow schedule.
Bond details
Results
| Clean price (per ₹100) | — |
| Accrued interest (per ₹100) | — |
| Dirty price you pay (per ₹100) | — |
| Cost per unit (₹1000 face) | — |
| Current yield | — |
| Macaulay duration | — |
| Modified duration | — |
| Convexity | — |
| Remaining coupons | — |
Cashflow schedule (per ₹100 face)
| # | Date | Cashflow |
|---|
How this calculator works
The calculator uses the street convention followed by Indian market participants: all remaining cashflows are discounted at a periodic rate (yield ÷ frequency), with the first period discounted for the exact fraction of the coupon period remaining. Accrued interest is computed under the convention that matches the bond type: 30/360 (European) for government securities per FIMMDA, and Actual/Actual for listed corporate bonds as standardised by SEBI's November 2016 circular. Solving for YTM uses Newton–Raphson iteration with a bisection fallback, accurate to a fraction of a basis point.
Worked example
Say a listed NCD with face value ₹1,000 pays a 7.60% coupon semi-annually and matures in five years. If it is quoted at a clean price of 98.50 (i.e. ₹985 per bond before accrued interest), you are buying ₹38 of coupon every six months plus a ₹15 pull-to-par gain at redemption. The YTM works out a little above the coupon, roughly 7.97%, because you paid below face value. If the same bond were quoted at 101.50, the YTM would drop below the coupon rate.
Reading the risk numbers
Modified duration estimates the % price change for a 1% (100 bps) move in yields. A modified duration of 4 means the price falls roughly 4% if yields rise 1%. Convexity is the curvature correction: bond prices fall a little less, and rise a little more, than duration alone predicts. If you're comparing interest-rate risk across bonds, our duration & convexity calculator shows the exact repriced impact for standard yield shocks.
Where to find the inputs
- Clean price: shown on NSE/BSE debt segment quotes and all SEBI-registered OBPP platforms.
- Coupon, frequency, maturity: from the bond's information memorandum or the platform's bond page (check the ISIN).
- Settlement date: usually T+1 working day for exchange trades and RFQ deals.
Yields shown by platforms can embed distributor markups in the price. Running the quoted price through an independent calculator like this one is the quickest way to check the yield you're being offered. Read our platform comparison guide for how to spot markup differences on the same ISIN.
Frequently asked questions
What is the difference between YTM and the coupon rate?
The coupon rate is the fixed interest the issuer pays on face value. YTM (yield to maturity) is the annualised return you earn if you buy at today's price and hold to maturity. It accounts for the price you paid, the remaining coupons, and the pull to par at redemption. A bond bought below face value has a YTM above its coupon; bought above face value, below it.
Why does the calculator show a clean price and a dirty price?
Indian bonds are quoted on a clean price basis, but what you pay is the dirty price: clean price plus interest accrued since the last coupon. The seller earned that interest by holding the bond, so you compensate them at settlement. See our guide on clean vs dirty price for a worked example.
Which day count convention should I pick?
Government securities (G-secs and SDLs) accrue on 30/360 as per FIMMDA conventions. Listed corporate bonds use Actual/Actual, standardised by SEBI in November 2016. The calculator sets this automatically when you choose the bond type.
Does this work for monthly-coupon NCDs?
Yes. Set the coupon frequency to monthly. Many retail NCDs pay monthly interest, and a 9% coupon paid monthly has a slightly higher effective annual yield than 9% paid annually.
What are the limitations of YTM?
YTM assumes you hold to maturity and reinvest every coupon at the same rate, which is rarely exactly true. It also ignores taxes and platform charges. For a post-tax comparison against a fixed deposit, use our FD vs bond calculator.
Related tools & guides
Educational tool, last reviewed July 2026. Results are estimates based on your inputs and standard market conventions; actual traded prices, taxes and platform charges may differ. Not investment advice; see the disclaimer.