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, and why this page asks for both dates
- 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)
Yield to Worst is the honest number, and you cannot get it from a yield-to-call figure alone. That is why there is a years-to-maturity field here as well as a years-to-call field: the calculator solves both yields off the same price and reports the lower one, which is what a bond desk would quote you.
The logic behind picking the lower one is not pessimism, it is that the issuer chooses. A call provision is an option, and the issuer owns it. They will exercise it when it suits them, which is precisely when rates have fallen and you would rather have kept the bond. You should assume the outcome that is worst for you, because the person deciding is the person it is best for.
One consequence worth internalising: a bond bought at a large premium can have a perfectly respectable yield to maturity and a dismal, even negative, yield to call. If the call date is close and the call price is below what you paid, the capital loss is crammed into very few years. The calculator flags that case rather than quietly printing a small number.
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.
SuperGlobalCalculator is independently built and maintained. See how we build and verify our calculators.