NCD Yield / Effective Return Calculator
Calculate a Non-Convertible Debenture's current yield and approximate yield to maturity (YTM) from its coupon rate, face value and your purchase price. Pick a live NCD to auto-fill face value and coupon.
Current Yield
+9.00%
Current yield = annual interest ÷ your purchase price. Differs from the coupon rate whenever you buy above or below face value.
Annual Interest
₹90
Approx. Yield to Maturity
+9.00%
Coupon Rate
+9.00%
Approx. YTM uses the standard simplified formula — [annual interest + (face value − purchase price) ÷ years to maturity] ÷ [(face value + purchase price) ÷ 2] — a widely used estimate, not a precise IRR calculation. NCD interest is taxable at your income slab rate; consult a tax advisor for TDS and filing treatment.
How the NCD Yield / Effective Return Calculator works
An NCD's coupon rate is fixed at issue and paid on face value regardless of what you actually pay for it. If you buy at face value (typical at issue), your current yield equals the coupon rate. If you buy in the secondary market at a discount or premium to face value, current yield and coupon rate diverge — current yield rises when you buy below face value, and falls when you buy above it.
Approximate Yield to Maturity (YTM) additionally accounts for the capital gain or loss you'll realise at maturity if your purchase price differs from face value, spread over the remaining tenure. This calculator uses the standard simplified approximation formula — a widely used estimate, not a precise internal-rate-of-return calculation, which would need to account for the exact timing of each interest payment.
Disclaimer: This calculator is for educational purposes only and does not constitute investment advice. Always read the Red Herring Prospectus and verify current rates before applying for any IPO.