UK bond yield calculator
Yield to maturity, running yield and what you keep after tax, for UK government bonds (gilts) (105 of them) and sterling corporate bonds (82). Prices update every 15 minutes during market hours.
What it works out
- Yield to maturity: your annual return if you buy at today's price and hold until the bond is repaid.
- Running yield: the coupon as a percentage of the price you pay.
- Capital gain or loss as the price moves to £100 at repayment.
- Your return on any amount: coupons, gain and total profit.
- Yield after tax at your own income tax rate.
Government bonds (gilts)
Gilts are bonds issued by the UK government. You receive a fixed coupon twice a year and £100 for every £100 nominal when the gilt is repaid. Coupons count as income for tax, but gains on gilts are free of Capital Gains Tax, which is why the calculator ranks gilts by what you keep after tax. For index-linked gilts it shows the real yield: the return on top of inflation.
Corporate bonds
Corporate bonds are issued by companies. They usually pay more than gilts because you take the risk that the company can't pay: if it runs into trouble you could lose some or all of your money. Some can also be repaid early. The calculator's figures assume each bond is repaid in full on its maturity date. Most sterling corporate bonds are "qualifying corporate bonds", so gains on them are also free of Capital Gains Tax, but check the bond you're looking at.
How the figures are calculated
Every yield is calculated from the latest price using the Debt Management Office's conventions, and our gilt yields are checked against its published reference prices. The methodology page shows each formula.
Questions
What's the difference between yield to maturity and running yield?
Running yield is the coupon divided by today's price: the income you get each year. Yield to maturity also counts the gain or loss as the price moves to £100 at repayment, so it's the better measure of your total annual return if you hold the bond until it's repaid.
Why can a low-coupon gilt pay more after tax?
Coupons are taxed as income, but the gain from buying below £100 and being repaid at £100 is free of Capital Gains Tax on gilts. A low-coupon gilt bought well below £100 earns most of its return as that tax-free gain, so for higher-rate taxpayers it can beat a higher-coupon gilt with a better headline yield.
Does the calculator cover corporate bonds?
Yes, sterling corporate bonds as well as gilts, with the same yield and return figures. Corporate bonds carry the risk that the company can't pay, and some can be repaid early; the figures assume each bond is repaid in full on its maturity date.
How often are prices updated?
Every 15 minutes during market hours. Each figure is calculated from the latest price using the Debt Management Office's conventions.