US Treasury Bill Calculator
What Are Treasury Bills?
Treasury Bills (T-Bills) are short-term debt securities issued by the government at a discount to their face value. They are considered one of the safest investment options because they are backed by the full faith and credit of the issuing government. T-Bills do not pay periodic interest but instead provide returns through the difference between their discounted purchase price and their face value at maturity.
For example, if you buy a T-Bill with a face value of $1,000 for $950, you will earn $50 in interest when it matures. The yield on T-Bills is often used as a benchmark for risk-free rates in financial markets.
This tool helps investors calculate key metrics such as the discount yield and total interest earned from purchasing T-Bills, making it easier to evaluate their investment returns.
How to Use the US Treasury Bill Calculator
Follow these simple steps to calculate your Treasury Bill returns:
- Enter the Face Value: Input the T-Bill’s face value in USD. This is the amount you will receive when the T-Bill matures.
- Enter the Purchase Price: Input the price you paid to purchase the T-Bill. This should be less than its face value since T-Bills are sold at a discount.
- Enter Days to Maturity: Specify how many days remain until the T-Bill matures (e.g., 91 days, 182 days, or other durations).
- Click Calculate: Press the “Calculate” button to see your results. The tool will display:
- The Discount Yield (percentage return based on purchase price).
- The Total Interest Earned (difference between face value and purchase price).
- Review Explanation: Below your results, an explanation of how calculations were performed will help you better understand your investment returns.
This calculator is optimized for use on all devices, ensuring a seamless experience whether you’re on a desktop, tablet, or smartphone.