401(k) Loan Calculator
Calculate 401(k) loan repayment, interest paid back to yourself, and the opportunity cost of lost market returns. See the true cost of borrowing from retirement.
Coupon Payment Calculator
Calculate bond coupon payments, current yield, yield to maturity, and after-tax income. View payment schedule and income breakdown.
$
%
yrs
$
%
Coupon Paymentโง
$25.00
$50.00/year
Current Yieldโง
0.05%
Annual coupon / market price
Yield to Maturityโง
0.05%
Total return held to maturity
Total Coupon Incomeโง
$500.00
20 payments over term
After-Tax Yieldโง
0.04%
Tax rate: 22%
Gain / Loss at Maturityโง
$20.00
Bought at discount
Income Breakdown
Coupon Income
Capital Gain
Payment Schedule
| Period | Payment | Cumulative |
|---|---|---|
| 1 | $25.00 | $25.00 |
| 2 | $25.00 | $50.00 |
| 3 | $25.00 | $75.00 |
| 4 | $25.00 | $100.00 |
| 5 | $25.00 | $125.00 |
| 6 | $25.00 | $150.00 |
| 7 | $25.00 | $175.00 |
| 8 | $25.00 | $200.00 |
| 9 | $25.00 | $225.00 |
| 10 | $25.00 | $250.00 |
| 11 | $25.00 | $275.00 |
| 12 | $25.00 | $300.00 |
| 13 | $25.00 | $325.00 |
| 14 | $25.00 | $350.00 |
| 15 | $25.00 | $375.00 |
| 16 | $25.00 | $400.00 |
| 17 | $25.00 | $425.00 |
| 18 | $25.00 | $450.00 |
| 19 | $25.00 | $475.00 |
| 20 | $25.00 | $500.00 |
Planning notes, formulas, and examples
About the Coupon Payment Calculator
A bond coupon payment is the periodic interest paid to the bondholder based on face value, coupon rate, and payment frequency. It is the cash income side of a bond investment, while current yield and yield to maturity show how that income compares with the price you pay.
A $1,000 bond with a 5% annual coupon paid semi-annually generates two $25 payments per year. If the bond trades above or below par, the yield changes even though the coupon payment stays fixed. That distinction matters when comparing corporate bonds, Treasuries, municipal bonds, and other fixed-income securities.
This calculator shows the per-period coupon amount, annual income, current yield, YTM, after-tax yield, and payment schedule so you can evaluate both cash flow and total return.
When This Page Helps
Use this when you need to compare a bond's stated coupon with the actual income it produces at today's market price. The calculator ties together payment frequency, market price, tax treatment, and maturity so you can compare bonds on an apples-to-apples basis.
How to Use the Inputs
- Enter the bond's face (par) value.
- Input the annual coupon rate as a percentage.
- Select the payment frequency (semi-annual is most common).
- Set years to maturity.
- Enter the current market price you paid or would pay.
- Optionally set your tax rate for after-tax yield.
- Review yields, income totals, and payment schedule.
Formula used
Coupon Payment = Face Value ร Coupon Rate / Frequency. Current Yield = Annual Coupon / Market Price. YTM is solved iteratively: Price = ฮฃ[C/(1+r)^t] + FV/(1+r)^n.Example Calculation
Result: Coupon: $25/period โ Current yield: 5.10% โ YTM: 5.22%
A $1,000 bond with a 5% coupon paid semi-annually generates $25 every 6 months ($50/year). Purchased at $980 (discount), the current yield is 5.10% (50/980). YTM of 5.22% includes the $20 capital gain at maturity spread over 10 years.
Tips & Best Practices
- Semi-annual payments are standard for U.S. corporate and government bonds.
- Current yield only considers coupon income โ YTM also accounts for capital gains or losses.
- Bonds bought at a discount have YTM > current yield; bonds at a premium have YTM < current yield.
- Municipal bond coupons are often tax-exempt โ set tax rate to 0% for munis to see the equivalent yield.
- Zero-coupon bonds have a 0% coupon rate โ all return comes from buying at a discount to face value.
- Accrued interest between payment dates means you pay the seller for the partial period when buying.
Coupon Basics
The coupon payment is fixed by the bond terms. Frequency changes when the cash arrives, not the stated annual coupon rate.
Yield Interpretation
Current yield uses the market price. YTM also reflects the gain or loss you realize if the bond is held to maturity.
Common Checks
Verify the payment frequency, accrued interest, and tax treatment before comparing bonds with different structures.
Sources & Methodology
Last updated:
Methodology
This page calculates the contractual coupon cash flow from face value, stated coupon rate, and payment frequency, then compares that fixed coupon stream with the entered market price to estimate current yield and a hold-to-maturity yield. When a tax rate is entered, it also shows a simple after-tax income view based on the stated coupon stream.
It is a bond-income worksheet rather than a brokerage statement or fixed-income analytics platform. Settlement conventions, accrued interest, call features, day-count conventions, and tax treatment can all change the realized yield compared with this simplified model.
Sources
- What Are Corporate Bonds? (Investor.gov / U.S. Securities and Exchange Commission) โ SEC investor bulletin explaining face value, coupon payments, premiums/discounts, and yield to maturity.
- Municipal Bonds: Understanding Credit Risk (Investor.gov / U.S. Securities and Exchange Commission) โ SEC investor bulletin covering municipal bond cash flow, tax treatment, and risk considerations that affect after-tax bond comparisons.
Frequently Asked Questions
A coupon is the periodic interest payment a bond issuer makes to the bondholder. It is calculated as the face value multiplied by the coupon rate, divided by the payment frequency. The term originates from physical bond certificates that had detachable coupons.
The coupon rate is fixed at issuance and based on face value. Current yield divides the annual coupon by the market price (which changes). YTM accounts for both coupon income and capital gain/loss over the remaining life of the bond.
YTM differs when the bond trades above or below par. If you buy at a discount, your YTM exceeds the coupon rate because you receive both coupons and a capital gain. At a premium, YTM is lower because you lose money on the price difference at maturity.
More frequent payments result in slightly higher effective yield due to reinvestment opportunities. A 5% coupon paid semi-annually has a higher effective annual yield than 5% paid annually, because you can reinvest the mid-year payment.
Accrued interest is the coupon income earned since the last payment date. When you buy a bond between payment dates, you pay the seller the accrued interest in addition to the market price. You recover this amount when the next coupon is paid.
Yes, for most bonds. Corporate bond coupons are taxed as ordinary income. Treasury bond coupons are exempt from state/local tax but subject to federal tax. Municipal bond coupons are typically exempt from federal tax and sometimes state tax.
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