Yield to Call Calculator (YTC)
Enter a callable bond's face value, coupon rate, current price, call price and years to the call date to get the exact yield to call (YTC) — the annualised return if the issuer exercises the call option.
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Annual return if the bond is called on the call date at the call price
How does this calculator work?
YTC solves P = Σ C/(1+r/f)^t + CP/(1+r/f)^n for the annual yield r using Newton-Raphson iteration, where CP is the call price and n is the number of periods to the call date. Most relevant for premium bonds when the issuer is likely to call. Assumes coupons reinvested at YTC and call exercised exactly on the call date.
Formula
How this is calculated
Many bonds include a call provision that lets the issuer redeem the bond before maturity, typically at a specified call price (often par or a small premium to par). Yield to call is the internal rate of return assuming the issuer calls the bond at the earliest call date: all future cash flows are the periodic coupon payments up to the call date plus the call price received on that date.
The calculation is structurally identical to yield to maturity but substitutes the call price for face value and the years to call date for years to maturity. Because the equation is non-linear in r, the calculator uses Newton-Raphson iteration starting from the approximate formula YTC ≈ (C + (CP − P)/n) / ((CP + P)/2), where C is the annual coupon, CP is the call price, P is the current price, and n is the years to call.
Issuers typically call a bond when market interest rates have fallen below the coupon rate — meaning they can refinance more cheaply. For the investor, YTC is therefore most relevant for premium bonds (trading above par) and is generally considered the more conservative yield estimate in those cases. Assumptions: all coupons are reinvested at the YTC rate, no default, and the call is exercised on exactly the specified date.
Frequently asked questions
Use YTC when the bond is trading at or above the call price and rates have fallen — in that scenario the issuer is likely to call the bond, so YTC better reflects the actual return. For bonds trading at a steep discount to par, YTM is typically the more relevant figure.
Call prices are defined in the bond indenture. A common structure is par (100% of face value) after an initial non-call period, but some bonds have a small call premium (e.g. 101% or 102% of face) that declines toward par as maturity approaches.
YTC replaces the maturity date with the call date and replaces face value with the call price. If the bond is called early, the investor receives the call price instead of face value and misses any remaining coupons — YTC quantifies the annualised impact of that early redemption.
Also known as
TG we-Calculate Editorial Team. (2026). Yield to Call Calculator (YTC) [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/yield-to-call-calculator
TG we-Calculate Editorial Team. "Yield to Call Calculator (YTC)." TG we-Calculate. 2026. https://we-calculate.com/calculator/yield-to-call-calculator.
TG we-Calculate Editorial Team, "Yield to Call Calculator (YTC)," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/yield-to-call-calculator
@misc{wecalculate_yield_to_call_calculator, title = {Yield to Call Calculator (YTC)}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/yield-to-call-calculator}}, year = {2026}, note = {TG we-Calculate} }
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