Yield to Call Calculator

About this calculator

Yield to call (YTC) estimates the annualized return a bondholder would earn if a callable bond is redeemed by the issuer at its call date and call price rather than held to maturity. A common approximation is YTC ≈ [C + (Call Price − Price) / n] ÷ [(Call Price + Price) / 2], where C is the annual coupon payment, Price is the bond’s current market price, and n is the number of years remaining until the call date.

Many corporate and municipal bonds are issued with a call feature that lets the issuer redeem them early — typically after interest rates fall and refinancing at a lower rate becomes attractive to the issuer — which caps the investor’s upside even if market yields keep dropping. Fixed-income investors, bond traders and financial advisors compare a callable bond’s YTC against its yield to maturity and buy or hold based on whichever scenario (call or full maturity) gives the lower, more conservative return.