How to Calculate Yield to Maturity in Excel

YTM is academically defined as market interest rate, but means Yield to Maturity. It actually takes purchase price, the value of redemption, time between payment of interest, and the yield of coupon.

Data preparation

We will calculate the YTM at ease, and you need a data that looks like this:

data table

Important Note: It is extremely important that the frequency is 1 – 4, and the basis is 1 – 3. This would guarantee the calculation of the YTM being successful.

Yield formula creation

Click beside Yield (B11) (1), type =YIELD(B4;B5;B6;B7;B8;B9;B10) (2), and press enter.

Excel ytm YIELD formula

Note: You can now format the yield to any format you want.