Treasury Bill Calculator
How to Use the Treasury Bill Calculator
Enter the purchase price or investment amount, face value and time to maturity as requested by the tool. The calculator estimates the discount earnings and annualized yield of a Treasury bill.
Practical Example
If a T-bill is purchased for USD 9,800 and pays USD 10,000 at maturity, the investor earns USD 200 before taxes. The annualized yield depends on how many days remain until maturity.
Factors That Affect the Result
Purchase price, maturity length, reinvestment assumptions, taxes and the yield convention used can affect the reported return. T-bill quotations may use different annualization methods.
Frequently Asked Questions
Do Treasury bills pay coupons?
Typically no. They are generally issued at a discount and mature at face value.
Is T-bill yield the same as bond yield?
Not exactly. Short-term bills are often quoted using specialized discount or investment-yield conventions.
Does this calculator include taxes?
No. Tax treatment should be considered separately.
Methodology and Practical Limits
Treasury-bill returns can be quoted using different conventions, including discount yield and investment yield. Purchase price, face value and days to maturity determine earnings, but annualized figures should be compared only when the same day-count and yield convention is used.