Bond Equivalent Yield Calculator: Maximize Your Investment Returns
Enter face value, purchase price, and days to maturity; the calculator returns the annualised Bond Equivalent Yield—e.g., $1,200 bought for $1,050 maturing in 180 days equals 28.9 %. U.S. Treasury bills can mature in as little as four weeks (TreasuryDirect.gov).
Bond Equivalent Yield Calculator
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How to use the tool
Face Value – enter the bond’s maturity amount. Try 1,200 or 2,750.
Purchase Price – type what you pay. Examples: 1,050 or 2,560.
Days to Maturity – add remaining days, such as 180 or 90.
Press “Calculate” to view the annualised Bond Equivalent Yield (BEY).
Formula used
$$
\text{BEY}= rac{\text{Face Value}-\text{Purchase Price}}{\text{Purchase Price}}\times rac{365}{\text{Days to Maturity}}
$$
Common Treasury bill terms: 4, 13, 26, 52 weeks (TreasuryDirect.gov).
FINRA highlights BEY for comparing discount instruments (FINRA, 2022).
Average U.S. corporate bond coupon in 2023: 4.5 % (S&P Global, 2023).
Minimum T-bill face value: $100 (TreasuryDirect.gov).
One-month U.S. bills briefly yielded −0.10 % in 2020 (Federal Reserve, 2020).
FAQ
What is Bond Equivalent Yield?
Bond Equivalent Yield is the annualised return on a discount security, assuming simple 365-day compounding (Investopedia, 2023).
How does the calculator work?
The tool computes ROI, multiplies it by 365 divided by days remaining, and outputs a percentage—exactly as the BEY formula states.
Why use 365 days, not 360?
BEY follows Treasury convention; U.S. TreasuryDirect quotes yields on a 365-day basis for comparability (TreasuryDirect.gov).
Can BEY be negative?
Yes. A purchase price above face value with a short maturity yields a negative annualised return (Federal Reserve, 2020).
How often should you recalculate?
Update BEY whenever price or days to maturity change; traders refresh daily in volatile markets (CFA Institute, 2022).
Is BEY the same as yield-to-maturity?
No. YTM assumes reinvested coupons and compounding; BEY annualises simple discount yield (Fabozzi, 2021).
Does currency matter?
The formula is unit-agnostic; enter face and price in the same currency to keep results consistent.
What boosts BEY the most?
A larger discount (lower purchase price) and fewer days to maturity increase BEY, assuming face value stays fixed.
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