Calculator
Example Data Table
| Face Value | Coupon Rate | Market Price | Annual Coupon | Current Yield |
|---|---|---|---|---|
| $1,000 | 6% | $950 | $60 | 6.3158% |
| $1,000 | 5% | $1,050 | $50 | 4.7619% |
| $500 | 7.5% | $480 | $37.50 | 7.8125% |
Formula Used
Annual Coupon = Face Value × Coupon Rate
Current Yield = Annual Coupon ÷ Market Price × 100
Payment Per Period = Annual Coupon ÷ Payments Per Year
Total Annual Income = Annual Coupon × Quantity
After Tax Yield = After Tax Annual Income ÷ Net Investment × 100
Premium Or Discount = (Market Price − Face Value) ÷ Face Value × 100
Yield Spread = Current Yield − Reference Rate
How To Use This Calculator
Enter the face value of the bond or income instrument.
Add the coupon rate as a yearly percentage.
Enter the current market price paid for one unit.
Choose how many payments are received each year.
Add quantity, tax rate, transaction cost, and reference rate.
Press the calculate button to view detailed results.
Use the CSV and PDF buttons to save your calculation.
Current Yield Guide
What Current Yield Means
Current yield measures annual income against current price. It is often used for bonds, notes, preferred shares, and other fixed income items. The idea is simple. You compare the cash income received each year with the amount paid today. This gives a direct income return.
Why Price Matters
A security may trade above or below face value. Price changes affect current yield. When price falls, current yield rises. When price rises, current yield falls. The coupon rate stays fixed, but the yield changes with market price. This makes the tool useful during quick market checks.
Useful Inputs
The calculator accepts face value, coupon rate, market price, payment frequency, quantity, tax rate, transaction cost, and reference rate. These inputs give a fuller view. You can estimate payment size, yearly income, after tax income, spread, and premium or discount.
Electrical Category Use
In an electrical planning context, the same yield method can help review income from energy bonds, utility notes, project finance instruments, or fixed return electrical infrastructure investments. It does not measure electrical current. It measures income yield using financial current price data.
Interpreting Results
A higher current yield may look attractive. Still, it may also reflect lower price, higher risk, or market concern. A lower yield may reflect stronger demand or premium pricing. The spread field compares the calculated yield with a reference rate. This helps judge relative return.
Limitations
Current yield does not include maturity gain or loss. It also excludes reinvestment assumptions. It is different from yield to maturity. Use it as an income snapshot. For final decisions, compare credit quality, maturity date, call risk, taxes, and fees.
FAQs
What is current yield?
Current yield is annual income divided by current market price. It shows the income return based on today’s price, not the original purchase price or maturity value.
Is current yield the same as coupon rate?
No. Coupon rate uses face value. Current yield uses market price. If price differs from face value, the two percentages will also differ.
Does this calculator measure electric current?
No. It calculates income current yield. In this page, the electrical category can apply to utility bonds, energy notes, or electrical project finance returns.
Why does current yield rise when price falls?
The annual coupon stays fixed. When market price falls, the same income is divided by a smaller price. That makes the current yield percentage higher.
Does current yield include capital gain?
No. Current yield only measures annual income against current price. It does not include maturity gain, maturity loss, reinvestment return, or selling gain.
What is after tax yield?
After tax yield adjusts annual income for the entered tax rate. It then compares after tax income with the net investment amount.
What is premium or discount?
Premium means market price is above face value. Discount means market price is below face value. The calculator shows this difference as a percentage.
Can I export my result?
Yes. After calculation, use the CSV button for spreadsheet records. Use the PDF button for a simple printable report.