How the T-Bill Yield Calculator Works
A treasury bill yield calculator helps investors determine the return on short-term government securities. Treasury Bills (T-Bills) are sold at a discount to face value and mature at par, with the difference representing the investor’s return.
This t bill yield calculator computes:
- Discount Yield (Bank Discount Yield) — uses a 360-day year and face value as the denominator
- Investment Yield (Bond Equivalent Yield) — uses a 365-day year and purchase price as the denominator
- Dollar Return — the total profit from the investment
- Annualized Return — return on an annualized basis
- Effective Annual Yield — annualized return with compounding
T-Bill Yield Formulas
Discount Yield (Bank Discount Yield)
Discount Yield = (Face Value − Purchase Price) ÷ Face Value × (360 ÷ Days to Maturity)
Investment Yield (Bond Equivalent Yield)
Investment Yield = (Face Value − Purchase Price) ÷ Purchase Price × (365 ÷ Days to Maturity)
Dollar Return
Dollar Return = Face Value − Purchase Price
Effective Annual Yield
Effective Annual Yield = (1 + Investment Yield)^(365 ÷ Days to Maturity) − 1
T-Bill Yield Comparison Table
| Days to Maturity | Purchase Price (for $10,000) | Discount Yield | Investment Yield |
|---|---|---|---|
| 28 days | $9,940 | 7.71% | 7.78% |
| 91 days | $9,800 | 7.91% | 8.19% |
| 182 days | $9,600 | 7.91% | 8.27% |
| 365 days | $9,200 | 7.91% | 8.70% |
Who Benefits from the T-Bill Yield Calculator?
This t bill interest rate calculator is designed for:
- Investors evaluating Treasury Bill returns
- Financial advisors comparing fixed-income investments
- Retail investors building a diversified portfolio
- Anyone wanting to understand the t bill yield formula
- Students learning about treasury bill yield to maturity calculator concepts
Frequently Asked Questions
What is a T-Bill yield calculator?
A T-Bill yield calculator helps investors determine the return on Treasury Bills by calculating discount yield, investment yield, and annualized return.
What is the formula for Treasury Bill yield?
The discount yield formula is: (Face Value − Purchase Price) ÷ Face Value × (360 ÷ Days to Maturity). The investment yield formula is: (Face Value − Purchase Price) ÷ Purchase Price × (365 ÷ Days to Maturity).
What is the difference between discount yield and investment yield?
Discount yield uses a 360-day year and face value as the denominator. Investment yield uses a 365-day year and purchase price as the denominator, making it more comparable to other investments.
How is the yield to maturity calculated on a Treasury Bill?
Yield to maturity on a T-Bill is calculated using the investment yield formula: (Face Value − Purchase Price) ÷ Purchase Price × (365 ÷ Days to Maturity).
What is the formula for calculating yield on Treasury Bills?
The Treasury Bill yield formula is: Discount Yield = (Discount ÷ Face Value) × (360 ÷ Days). Investment Yield = (Discount ÷ Purchase Price) × (365 ÷ Days).
Is my data stored anywhere?
No. All calculations run locally in your browser. No data is sent to any server.