Use the calculator to divide face value by purchase price, raise the result to 1 / years, then subtract 1; a $10,000 bond bought for $8,500 held 2 years yields 8.47 % annually (SEC Investor Bulletin, 2021).
A zero-coupon bond pays nothing until maturity, so you must discount its face value to know today’s price. In 2023, $332 billion of U.S. Treasury STRIPS—classic zero-coupon securities—were outstanding (U.S. Treasury, 2024). Use the simple formula Face Value ÷ (1 + Yield)^Years to get an instant estimate of what the bond is worth right now.
Yield to maturity (YTM) shows the annualised return you lock in by buying a bond today and keeping it to maturity. Enter coupon, face value, market price and years; the calculator reveals the approximate YTM in seconds. Investors use YTM to benchmark bonds inside the $10.5 trillion U.S. corporate bond market (SIFMA, 2023).
Compute a weighted average by multiplying each value by its weight, adding the products, then dividing the sum by 100. This blends numbers according to real-world importance. A 2023 CFA Institute survey found 91 % of portfolio managers rely on weighted averages when forecasting portfolio returns (CFA Institute, 2023).
Total stock return tells you the real gain from a stock—price change plus dividends divided by your starting cost. The S&P 500 has delivered about a 10 % annual total return over the long run (S&P Dow Jones Indices, 2023).
The calculator shows the taxable yield a bond must earn to equal a tax-free yield. Divide the tax-free rate by one minus your marginal tax rate; e.g., 5.10 % ÷ (1 – 0.30) = 7.29 %. The top U.S. marginal income-tax rate is 37 % (IRS, 2023). Use the tool to see if a taxable bond really beats your municipal bond after taxes.
The zero-growth dividend model finds a stock’s fair price by dividing its constant dividend by your required return. For instance, a $2.40 annual dividend and a 6.8 % hurdle rate give a value of $35.29—right on your screen in a single click. About 40 % of S&P 500 firms pay stable or slowly-growing dividends (S&P Global, 2023).
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