Accrued Interest Calculator
How to Use This Calculator
Hey, ready to figure out bond interest? Start by entering the bond’s face value—that’s the amount paid back at maturity. Next, add the annual coupon rate as a percentage.
Pick your settlement date (when the trade happens) and the last coupon payment date. Choose how often coupons pay out, like semi-annually for most bonds. Select the bond type to match the right day-count method.
- Hit Calculate, and you’ll see accrued interest, days counted, plus clean and dirty prices.
- For corporate bonds, it uses 360-day years; government ones stick to actual days.
- Try different dates to see how interest builds up between payments.
How Accrued Interest Works
Picture this: you buy a bond midway between interest payments. The seller already earned some interest since the last payout, right? You pay that extra as accrued interest.
The math is straightforward: (Face Value × Coupon Rate × Days Accrued) ÷ (Year Basis × Frequency). Corporate bonds often assume 30-day months and 360-day years for simplicity.
Government bonds count real days for precision. Dirty price adds this interest to clean price—that’s your total cost. Clean price is what markets quote to keep things comparable.
Common Questions
Why does bond type matter? Different types use different day-count rules. Corporate bonds simplify with 30/360; Treasuries use actual days in the year.
What’s the difference between clean and dirty price? Clean ignores accrued interest for quotes. Dirty includes it—you pay this full amount.
Can I use this for any bond? Yes, for fixed-rate coupon bonds. It covers most corporate, municipal, and government issues.
How accurate are the day counts? Matches standard conventions—differences are tiny, usually under a week’s interest.
Day-Count Methods Compared
References
- Financial Industry Regulatory Authority (FINRA). Accrued Interest Calculator Documentation. https://accruedinterest.nga.finra.org/
- Calculator.net. Bond Calculator: Clean Price, Dirty Price, and Day-Count Conventions. https://www.calculator.net/bond-calculator.html
- HexaCalculator. Accrued Interest Calculator: Day Count Basis Formulas. https://hexacalculator.com/calculators/finance/bonds/accrued-interest-calculator