Distinct from this site’s bond yield calculator — yield measures return; duration measures how much a bond’s price moves for a given change in interest rates.
How it works
Duration is the weighted-average time (in years) it takes to receive a bond’s cash flows, each weighted by its present value. A bond with more of its value returned later (a low coupon, or none at all) has a higher duration and more price sensitivity to rate changes.
What this does not include
This computes Macaulay duration specifically — modified duration (which more directly estimates percentage price change per rate change) is a related but separate figure this calculator doesn’t compute.
How to use this calculator
- Enter face value, coupon rate, yield to maturity, and years to maturity.
Frequently asked questions
Why does a zero-coupon bond’s duration equal its maturity exactly?
Because all its cash arrives in a single payment at maturity — there’s no earlier coupon cash flow to pull the weighted average earlier than the maturity date itself.
Does a higher coupon rate raise or lower duration?
Lower — more cash arrives earlier via coupons, pulling the weighted average time closer to today and reducing sensitivity to rate changes.
Why does duration matter to an investor?
It’s a quick way to compare interest rate risk across bonds — a higher-duration bond’s price will move more, in either direction, for the same change in rates.
