Yield to Call Calculator
Enter the call price, market price, coupon and years to the call date to find the yield to call.
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Enter the call price, price, coupon and years to see the yield to call.
Worked example
With these example inputs:
- Face value (par)$1,000
- Call price$1,050
- Market price$980
- Coupon rate5%
- Years to call5 yr
- Coupon frequency2
Yield to call: 6.34%
- Current yield5.1%
- Coupon payment$25.00
- Face value$1,000
Frequently asked questions
What is yield to call?
It is the return you would earn if a callable bond is redeemed at its first call date and price rather than at maturity. It uses the call price in place of face value.
Why does it matter for callable bonds?
Issuers often call bonds when rates fall, cutting your income short. Comparing yield to call with yield to maturity shows the more conservative return to plan around.
What is the difference between yield to call and yield to maturity?
Yield to maturity assumes the bond runs to its final date. Yield to call assumes the issuer ends it early at the call date. When a bond trades above its call price, the call yield is usually lower. Careful buyers plan around the lower of the two.
Why would a bond issuer call a bond early?
Usually because interest rates have fallen since they borrowed. Calling lets them repay you and reborrow at a cheaper rate. That is good for the issuer but cuts your coupon stream short. This tool shows what your return would be in that case.
Is the call price the same as the face value?
Not always. The call price is what the issuer pays to redeem early, and it is often a little above face value. Mixing the two up gives a wrong yield. Enter the actual call price from the bond terms for a correct result.