Enter your bond details on the left and click Calculate to see the coupon rate and full interest breakdown.
When a company or government issues a bond, they promise to pay the bondholder a set interest rate every year until the bond matures. That promised rate is the coupon rate — and it never changes once the bond is issued.
So if you hold a $1,000 bond with a 6% coupon rate, you receive $60 every year. Most bonds pay this in two equal amounts — $30 every six months. This is called a semi-annual coupon.
The coupon rate is set based on market interest rates at the time of issue. When market rates rise after a bond is issued, that bond becomes less attractive — and its price falls. When rates fall, existing bonds with higher coupons become more valuable and trade at a premium.
The math is simple — the coupon rate is just the annual payment as a percentage of face value:
Example: Bond face value = $1,000. Annual coupon = $60. Coupon rate = 6%. With semi-annual payments: $30 every 6 months. Over 10 years: total interest = $600.
| Face Value | Coupon Rate | Annual Payment | Semi-Annual |
|---|
Fixed-Rate Bonds — pay the same coupon every period. The most common type. Rate is set at issue and never changes.
Zero-Coupon Bonds — pay no interest. Sold at a deep discount and redeemed at face value. The gain is the investor's return.
Floating-Rate Bonds — coupon changes with a benchmark rate like SOFR or LIBOR. Common in corporate and government debt.
Step-Up Bonds — coupon increases on a set schedule over the bond's life. Often used by banks.
Inflation-Linked Bonds — face value adjusts with inflation. U.S. TIPS are the best-known example.
This calculator covers fixed-rate bonds. The coupon rate formula is the same for all types that pay regular interest.
How much a bond pays per year based on its coupon rate and face value.
| Coupon Rate | $500 | $1,000 | $5,000 | $10,000 | $25,000 | $50,000 |
|---|
Formula: Annual Coupon = Face Value × Coupon Rate. Currency shown as $.
Find the coupon rate when you know the annual payment and face value of the bond.
| Annual Payment | $500 | $1,000 | $2,500 | $5,000 | $10,000 | $50,000 |
|---|
Formula: Coupon Rate = Annual Payment ÷ Face Value × 100.
Estimated total interest received from a $1,000 bond at various coupon rates and holding periods.
| Coupon Rate | 3 Years | 5 Years | 7 Years | 10 Years | 15 Years | 20 Years | 30 Years |
|---|
Based on $1,000 face value bond. Total = Annual Coupon × Years to Maturity.
How a bond's current yield changes as the market price moves above or below face value ($1,000 face, 5% coupon = $50/yr).
| Market Price | vs Face Value | 3% Coupon | 4% Coupon | 5% Coupon | 6% Coupon | 8% Coupon |
|---|
Current Yield = Annual Coupon ÷ Market Price × 100. Based on $1,000 face value bond.
A reference guide to major government bond instruments and typical payment frequency around the world.
| Country | Bond Name | Coupon Type | Payment Freq. | Typical Maturities | Inflation-Linked? |
|---|---|---|---|---|---|
| 🇺🇸 USA | Treasury Note / Bond | Fixed | Semi-Annual | 2, 5, 10, 30 yr | Yes (TIPS) |
| 🇬🇧 UK | Gilt | Fixed | Semi-Annual | 2, 5, 10, 30 yr | Yes (Index-linked) |
| 🇩🇪 Germany | Bund | Fixed | Annual | 2, 5, 10, 30 yr | Yes (Linker) |
| 🇯🇵 Japan | JGB | Fixed | Semi-Annual | 2, 5, 10, 20, 30, 40 yr | Yes |
| 🇨🇳 China | CGB | Fixed | Semi-Annual | 1, 2, 3, 5, 7, 10, 30 yr | No |
| 🇦🇺 Australia | ACGB | Fixed | Semi-Annual | 3, 5, 10, 15 yr | Yes (ACGB-I) |
| 🇨🇦 Canada | GoC Bond | Fixed | Semi-Annual | 2, 3, 5, 10, 30 yr | Yes (RRB) |
| 🇫🇷 France | OAT | Fixed | Annual | 3, 5, 10, 30 yr | Yes (OAT€i) |
| 🇮🇳 India | G-Sec | Fixed / Float | Semi-Annual | 1, 2, 5, 10, 30, 40 yr | Yes (IIB) |
| 🇧🇷 Brazil | NTN-F / NTN-B | Fixed / Inflation | Semi-Annual | 3, 5, 10 yr | Yes (NTN-B) |
| 🇲🇽 Mexico | Bonos M | Fixed | Semi-Annual | 3, 5, 10, 20, 30 yr | Yes (Udibonos) |
| 🇿🇦 South Africa | R-Series Bonds | Fixed | Semi-Annual | 3, 5, 10, 30 yr | No |
Payment frequency and maturities may vary. This table is for reference only — verify with the relevant central bank or treasury.
Estimated after-tax coupon income from a $1,000 bond at common tax rates and coupon rates.
| Coupon Rate | Annual Gross | After 15% Tax | After 22% Tax | After 28% Tax | After 32% Tax | After 37% Tax |
|---|
Based on $1,000 face value bond. Tax rates are illustrative — actual tax on coupon income varies by country, filing status, and bond type (e.g. municipal bonds may be tax-exempt).