Yield to Call (YTC) Calculator
Calculate the yield to call on a callable bond.
Enter face value, coupon rate, call price, years to call, and current price to find the YTC.
Yield to Call (YTC)
Many bonds include a call provision that allows the issuer to redeem the bond before maturity at a specified call price. The Yield to Call is the annualized return you would earn if the bond is called on its first call date.
Why YTC matters: When interest rates fall, issuers typically call their bonds and reissue at lower rates. If you buy a callable bond at a premium expecting to hold to maturity, you may be disappointed — the call happens earlier and at a lower effective yield.
How YTC is calculated:
YTC is the discount rate r that makes:
Price = Σ [Coupon / (1+r)^t] + Call Price / (1+r)^n
Where n = number of periods to the call date. Since this has no closed form, it is solved iteratively.
A commonly used approximation:
YTC ≈ (Annual Coupon + (Call Price - Price) / Years to Call) / ((Call Price + Price) / 2)
Key variables:
| Variable | Meaning |
|---|---|
| Face Value | Par value of the bond (typically $1,000) |
| Coupon Rate | Annual interest rate printed on the bond |
| Call Price | Price the issuer pays to redeem early (often 101–103% of par) |
| Years to Call | Time until the first call date |
| Current Price | Market price you pay today |
YTC vs YTM:
- YTM assumes the bond is held to maturity
- YTC assumes the bond is called on the first call date
- For bonds trading at a premium, YTC is typically lower than YTM
- The yield you should focus on: whichever is lower (Yield to Worst)
Always compare YTM and YTC — the lower one (Yield to Worst) is what you should actually expect.
How we build and check this calculator
This calculator runs entirely in your browser, so the numbers you enter stay on your device. The math behind it is written by hand and tested against worked examples and standard references before the page goes live.
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