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Treasury Bond and T-Bill Yield Calculator

Calculate T-Bill bank discount yield and investment yield (bond equivalent yield), or T-Note and T-Bond current yield and approximate yield to maturity. Uses August 2026 Treasury yield curve benchmarks including the 10-year at 4.68%.

Security Type

As of August 2026: 3-month T-bill ~3.87%, 6-month ~3.95%, 1-year ~4.00%, 10-year ~4.68%, 30-year ~5.25%.

Price & Face Value

Face Value (par)

Purchase Price

Term

Days to Maturity

Common T-bill terms: 28, 91, 182, and 364 days.

Yield Analysis

Enter your security details and click calculate.

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Introduction

Treasury yields are the risk-free benchmark for every other interest rate in the market, and the U.S. Treasury daily yield curve is where they are published. As of August 17, 2026, the 3-month T-bill trades at 3.87%, the 1-year at 4.00%, the 10-year at 4.68%, and the 30-year at 5.25%. The curve is steepening at the long end, which means the market expects term premiums to persist even as the Fed cuts short rates. The mistake most retail investors make is reading a T-bill's bank discount rate and thinking it is the yield they will earn. It is not. The bank discount rate uses a 360-day year and par value, while the investment yield (bond equivalent yield) uses a 365-day year and the purchase price, and the two can differ by 10 to 20 basis points. This calculator computes both, plus current yield and approximate yield to maturity for coupon-bearing Treasuries.

What This Calculator Does

This tool calculates T-Bill yields two ways: the bank discount rate and the investment yield (bond equivalent yield), which is the number comparable to coupon-bearing bonds. For T-Notes and T-Bonds, it calculates the current yield and an approximate yield to maturity from the coupon rate, purchase price, face value, and years to maturity. It reports the total dollar return over the holding period.

The Formula

T-Bill Bank Discount Rate = (Discount / Face) x (360 / Days). T-Bill Investment Yield = (Discount / Purchase Price) x (365 / Days). Current Yield = Annual Coupon / Price. Approximate YTM = (C + (F - P)/n) / ((F + P)/2). Where Discount = Face - Price, C is annual coupon, F is face value, P is price, and n is years to maturity.

T-Bills are zero-coupon instruments sold at a discount to face value. The bank discount rate is the quoting convention used in markets, but it understates the true yield because it divides by face value (not your purchase price) and uses a 360-day year. The investment yield fixes both, dividing by the price you actually pay and using a 365-day year, which is why it is always higher than the bank discount rate. For coupon-bearing Treasuries, the current yield tells you the income return only, ignoring the gain or loss from price moving to par at maturity. The approximate YTM formula averages the price and face value in the denominator and adds the annualized gain or loss to the coupon, giving a close estimate of the true yield without solving the bond price equation iteratively.

Step-by-Step Example

Choose the security

An investor selects T-Bill mode for a 182-day bill with a $10,000 face value purchased at $9,850.

Enter the discount

The $150 discount on a $10,000 face over 182 days gives a bank discount rate of 2.97% and an investment yield of 3.05%.

Switch to a 10-year note

He switches to T-Note mode, enters a $10,000 face, $9,900 price, 4.625% coupon, and 10 years to maturity.

Read the yield

Current yield is 4.67% and approximate YTM is 4.74%, matching the August 2026 10-year Treasury benchmark.

Real-World Use Cases

T-Bill laddering for cash management

A corporate treasurer ladders 4-week, 8-week, and 13-week T-bills to keep cash liquid while earning the 3.87% 3-month yield, and uses the calculator to compare the investment yield against a money market fund.

Comparing a Treasury to a corporate bond

A fixed-income investor calculates the 4.68% yield on a 10-year Treasury, then compares the spread against a 6.00% investment-grade corporate to decide whether the 132 basis points compensates for the credit risk.

Duration and reinvestment planning

A retiree building a Treasury ladder uses the YTM across 2-year, 5-year, and 10-year maturities to estimate the blended yield and plan how coupon reinvestment will behave if the Fed continues cutting.

Common Mistakes to Avoid

Reading the bank discount rate as your return. The bank discount rate is a quoting convention, not your yield. A 4.00% bank discount rate on a 52-week bill corresponds to a higher investment yield because it divides by face value and uses a 360-day year. Always compare investment yields.
Using current yield instead of YTM for coupon bonds. Current yield ignores the gain or loss as price moves to par. A bond bought at a discount has a YTM higher than its current yield, and a premium bond has a YTM lower than its current yield. YTM is the right number for total return.
Forgetting that T-Bills are bought at auction, not at a fixed price. The price you pay depends on the auction's accepted discount rate. The calculator lets you enter the actual price, so use your auction confirmation, not a quoted rate alone.
Ignoring tax differences across Treasury products. Treasury interest is exempt from state and local tax but fully taxable federally. That makes a Treasury more attractive than a corporate bond of the same yield for investors in high-tax states like California or New York.

Frequently Asked Questions

What is the difference between the bank discount rate and the investment yield?

The bank discount rate divides the discount by face value and uses a 360-day year. The investment yield (bond equivalent yield) divides by the purchase price and uses a 365-day year. The investment yield is always higher and is the number comparable to coupon-bearing bond yields. Use it when comparing a T-bill to a CD or a bond.

How is the approximate YTM different from the exact YTM?

The approximate YTM formula averages the purchase price and face value in the denominator, which is close but not exact. The exact YTM solves the bond price equation iteratively. For a bond near par, the two are within a few basis points. For a bond far from par or with a long maturity, the approximation drifts, and a full bond math calculator is more accurate.

Are Treasury yields guaranteed if I hold to maturity?

Yes. If you buy a Treasury at issuance or in the secondary market and hold to maturity, you receive the face value plus any coupons, and the yield you locked at purchase is what you earn. Mark-to-market price fluctuations only matter if you sell before maturity.

Why is the yield curve sometimes inverted?

An inverted curve, where short yields exceed long yields, typically signals that the market expects the Fed to cut rates. In August 2026 the curve is positively sloped from the 3-month to the 30-year, meaning the market prices in term premium at the long end. The shape shifts with rate expectations and supply dynamics.

Should I buy Treasuries directly or through a fund?

Buying directly through TreasuryDirect or a broker avoids fund expense ratios and lets you lock a specific yield to maturity. A Treasury fund or ETF offers liquidity and diversification but has price risk if rates rise before you sell. For a hold-to-maturity strategy, direct purchase is usually cheaper.

Accuracy and Disclaimer

This calculator uses standard Treasury yield formulas. The bank discount rate, investment yield, current yield, and approximate YTM are computed from the inputs you provide. The August 2026 yield benchmarks referenced are point-in-time market rates from the Treasury daily yield curve and change daily. The approximate YTM is an estimate and differs slightly from the exact solution of the bond price equation. This is not investment advice. Treasury securities are backed by the full faith and credit of the U.S. government, but secondary market prices fluctuate. Consult a licensed financial advisor for portfolio-specific guidance.

Conclusion

Treasuries are the floor under every fixed-income decision. Get the yield right here, then compare it against a corporate or municipal bond with our Bond Yield to Maturity Calculator or model a long-term Treasury ladder against equities with the CAGR Calculator.