---
title: "Current Yield Calculator for Bonds | Coupon Beacon"
description: "Work out a bond's current yield from its coupon and price, see it at other prices, and compare it with yield to maturity over the years left."
url: https://couponbeacon.bond/current-yield-calculator/
---

# Current yield calculator

How much coupon income does a bond pay for its price? Enter the coupon rate and the price; add the years left to compare current yield with yield to maturity.

## What current yield measures

Current yield is a year's coupon income divided by the bond's price. Investor.gov's own example: a bond with a market price of $1,000 that pays $80 a year has a current yield of 8%.

Current yield = annual coupon ÷ clean price

It is quick to work out and handy for comparing income, but it leaves out two things: the gain or loss when the bond repays its face value, and when the payments arrive. Yield to maturity includes both. Enter the years left to see the gap. For a bond bought below face value, yield to maturity is higher than current yield; above face value it is lower.

Example: a 4.5% coupon pays $45 a year on $1,000 of face value. At a price of 96.25 ($962.50) the current yield is 45 ÷ 962.50 = 4.675%, while the yield to maturity over 10 years is 4.981%.

## Sources

- Investor.gov (U.S. Securities and Exchange Commission), glossary: [current yield](https://www.investor.gov/introduction-investing/investing-basics/glossary/current-yield), including the $80 on $1,000 example.
- Municipal Securities Rulemaking Board, [Rule G-33, Calculations](https://www.msrb.org/Rules-and-Interpretations/MSRB-Rules/General/Rule-G-33): the price and yield formula used for the yield to maturity comparison.

## Questions

**Is current yield the same as the coupon rate?**

Only when the price is exactly face value. The coupon rate is fixed against face value when the bond is issued; current yield moves every time the price does.

**Should I use the clean or the dirty price?**

The clean price, the way bonds are quoted. Accrued interest comes back to you with the next coupon, so adding it to the price would make the yield look slightly lower than it is.

**Why does the table show prices from 85 to 115?**

To show how current yield moves against price: below 100 it rises above the coupon rate, above 100 it falls below it. Your own price is added to the list and highlighted.