Purchase Price
Estimate how much you must pay for the bill using its face value, discount rate, and term.
Fixed-Income Investment Tool
Treasury Bill Calculator
Estimate a Treasury bill's purchase price, total interest earned, maturity value, bank discount yield, investment yield, and annualized return. Enter the bill's face value, quoted discount rate, and remaining days to maturity to receive a detailed calculation.
Calculate Treasury Bill Returns
Use a quoted bank discount rate or enter a known purchase price.
What Is a Treasury Bill Calculator?
A Treasury Bill Calculator estimates the price and return of a short-term government security that is normally sold below its face value. Instead of making regular interest payments, a Treasury bill generally provides a return through the difference between its purchase price and its maturity value.
For example, an investor may purchase a bill for less than its stated face value and receive the full face value when it matures. The difference represents the investor's earnings before taxes, fees, and other adjustments.
Interest Earned
See the difference between the total maturity value and your initial purchase cost.
Yield Comparison
Compare bank discount yield, holding-period return, and investment yield.
How to Use the Treasury Bill Calculator
Select a Method
Choose whether you know the quoted discount rate or the actual purchase price.
Enter Face Value
Add the amount that will be paid when the Treasury bill reaches maturity.
Add Rate and Term
Enter the bank discount rate or purchase price, then provide the days to maturity.
Review Results
Examine the purchase cost, profit, maturity value, and calculated yields.
Treasury Bill Calculator Formulas
This calculator uses commonly applied Treasury bill formulas. The bank discount calculation normally uses a 360-day year, while the investment yield calculation uses a 365-day year.
Purchase Price from Discount Rate
Price = Face Value × [1 − (Discount Rate × Days ÷ 360)]Interest Earned
Interest = Face Value − Purchase PriceBank Discount Yield
Discount Yield = (Interest ÷ Face Value) × (360 ÷ Days) × 100Investment Yield
Investment Yield = (Interest ÷ Purchase Price) × (365 ÷ Days) × 100Holding-Period Return
Holding Return = (Interest ÷ Purchase Price) × 100The quoted bank discount yield is calculated against face value, not the amount actually invested. The investment yield uses the purchase price as its base, which may provide a more useful representation of the investor's annualized return.
Understanding Your Treasury Bill Results
| Result | Meaning | Why It Matters |
|---|---|---|
| Purchase Cost | The estimated amount paid to acquire the bill. | Shows the capital required for the investment. |
| Maturity Value | The total face value received when the bill matures. | Helps you understand the expected future payment. |
| Interest Earned | The difference between maturity value and purchase cost. | Represents your estimated gross profit. |
| Discount Yield | An annualized yield based on face value and a 360-day year. | Often used when Treasury bills are quoted in the market. |
| Investment Yield | An annualized return based on the amount invested. | Can be more useful when comparing investment performance. |
| Holding Return | The percentage return earned during the bill's actual term. | Shows the non-annualized return for the holding period. |
Important Factors to Consider
Days to Maturity
Treasury bills are short-term securities. A longer period to maturity generally produces a larger dollar discount when the quoted rate remains unchanged.
Quoted Yield Convention
A bank discount yield differs from a standard investment return because it uses the maturity value as the calculation base and commonly assumes a 360-day year.
Taxes and Transaction Costs
The calculator provides gross estimates. Taxes, brokerage fees, reinvestment terms, auction rules, and settlement conventions can affect the investor's actual net return.
Early Sale Before Maturity
The displayed results assume that the bill is held until maturity. Selling it early may create a gain or loss because its market value can change as interest rates and market conditions move.
This calculator is provided for educational and estimation purposes.
It does not provide financial, tax, or investment advice. Confirm
current auction terms and calculation conventions with the relevant
Treasury authority, financial institution, or qualified adviser.
Frequently Asked Questions
A Treasury bill is a short-term government debt security. It is commonly sold at a discount and pays its full face value at maturity.
The investor's gross profit is generally the difference between the amount paid for the bill and the face value received at maturity.
The bank discount rate expresses the annualized discount as a percentage of face value. It commonly uses a 360-day year.
Investment yield uses the lower purchase price as its base, while discount yield uses the larger face value. It also commonly uses 365 days instead of 360 days.
No. The results show estimated gross returns before taxes, transaction fees, brokerage charges, and other expenses.
Yes. Enter the face value of one bill and use the number of bills field to calculate the combined purchase cost, maturity value, and profit.
Your return may differ from the calculator's estimate because the bill's market price may increase or decrease before its maturity date.