Treasury Bill Calculator
Calculate the yield, purchase price, and profit for Treasury bills (T-bills) based on face value, discount rate, and days to maturity.
Published by:
isCalculator Editorial Team
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How to use this tool?
How to Use the Treasury Bill Calculator
- Enter Face Value ($): Input the bond’s face value (e.g., $10,000). Must be a positive number.
- Enter Discount Rate (%): Input the annual discount rate (e.g., 5 for 5%). Must be between 0 and 100.
- Enter Days to Maturity: Input the number of days until the bill matures (e.g., 90). Must be at least 1.
- Click “Calculate”: Press the button to compute the results.
Results Explained:
- Purchase Price: The price you pay today, calculated as Face Value × (1 - (Discount Rate × Days) / 360).
- Profit: The difference between Face Value and Purchase Price.
- Annualized Yield: The effective annual return, based on a 360-day year.
All inputs must be positive numbers. The discount rate is a percentage (not decimal). Use whole days only.
Previous Results
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Frequently Asked Questions
A Treasury bill (T-bill) is a short-term U.S. government debt obligation with a maturity of one year or less. They are sold at a discount from face value and do not pay periodic interest.
The purchase price is calculated as Face Value × (1 - (Discount Rate × Days to Maturity) / 360). The discount rate is the annualized rate used to compute the discount.
The annualized yield (also called investment yield) is the return on investment annualized using a 360-day year. It is calculated as (Profit / Purchase Price) × (360 / Days to Maturity) × 100%.
