How this Bond Profit Calculator Works?
This calculator helps you understand the profitability of your bond investments. Simply input the relevant values and calculate your profit and profit percentage.
Steps to use the calculator:
- Enter the Face Value and Purchase Price: Input the face value of the bond and the price you paid to purchase it.
- Enter the Coupon Rate and Years to Maturity: Input the annual coupon rate and the number of years until the bond matures.
- Include Additional Costs: Add any additional costs such as brokerage fees.
- Calculate: Click the "Calculate Profit" button to determine your profit and profit percentage.
Calculation Formula:
Profit = (Face Value + Total Coupon Payments) − (Purchase Price + Additional Costs)
Profit Percentage = (Profit / (Purchase Price + Additional Costs)) × 100
Once calculated, the profit and profit percentage will be displayed, providing a clear understanding of your investment's profitability.