T-Bill (Treasury Bill) Yield Calculator
Our T-Bill Yield Calculator is designed for investors and financial analysts to compute the yield of U.S. Treasury Bills efficiently. This tool helps in making informed investment decisions.
Calculate Your T-Bill Yield
Results
Data Source and Methodology
All calculations are based on the formulas and data provided by the U.S. Treasury. For more information, visit TreasuryDirect. All calculations are performed rigorously according to these sources.
The Formula Explained
Yield Formula: \( \text{Yield} = \left( \frac{\text{Face Value} - \text{Purchase Price}}{\text{Purchase Price}} \times \frac{365}{\text{Days to Maturity}} \right) \times 100 \)
Glossary of Terms
- Face Value: The amount paid to the holder at maturity.
- Purchase Price: The price paid to buy the T-Bill.
- Days to Maturity: The number of days until the T-Bill matures.
- Annual Yield: The return on investment expressed as a percentage per annum.
Practical Example
Consider a T-Bill with a face value of $1000, purchased for $950, and maturing in 90 days. Using the yield formula, the calculated annual yield would be approximately 20.42%.
Frequently Asked Questions (FAQ)
What is a Treasury Bill (T-Bill)?
A Treasury Bill is a short-term government security with maturity ranging from a few days to one year.
How is the yield on a T-Bill calculated?
The yield is calculated based on the difference between the purchase price and the face value, adjusted for the time to maturity.
Why invest in T-Bills?
T-Bills are considered a safe investment due to the backing of the U.S. government and provide a predictable return.
Are T-Bills subject to state taxes?
T-Bills are exempt from state and local taxes, but interest income is taxable at the federal level.
Where can I buy Treasury Bills?
T-Bills can be purchased directly from the U.S. Treasury or through a broker.
Formula (LaTeX) + variables + units
','
Yield Formula: \( \text{Yield} = \left( \frac{\text{Face Value} - \text{Purchase Price}}{\text{Purchase Price}} \times \frac{365}{\text{Days to Maturity}} \right) \times 100 \)
- T = property tax (annual or monthly depending on input) (currency)
- TreasuryDirect — treasurydirect.gov · Accessed 2026-01-19
https://treasurydirect.gov/
Last code update: 2026-01-19
- Initial audit spec draft generated from HTML extraction (review required).
- Verify formulas match the calculator engine and convert any text-only formulas to LaTeX.
- Confirm sources are authoritative and relevant to the calculator methodology.