Bond duration & sensitivity
Compute a bond’s modified duration — the percentage its price moves per 1% change in yield — and the price swing for a chosen yield move, from its coupon, maturity and yield.
Runs entirely in your browserRuns entirely on your device — nothing you type is sent anywhere. Educational only, and not investment advice.
How to use this calculator
Each step names a control you will find on screen above.
- Face value and coupon
The bond’s par value and annual coupon rate, which set its cash flows.
- Years to maturity
How long until the bond repays. Longer maturity means higher duration and more price sensitivity to rates.
- Yield (YTM)
The market yield used to discount the cash flows and price the bond.
- Yield change
The rate move to test. The tool applies the modified-duration estimate to show the resulting price change.
Worked example: A 5-year 8% bond at par
₹1,000 face, 8% annual coupon, 5 years to maturity, 8% yield, testing a +1% yield move.
What to enter
- Face value
- ₹1,000
- Coupon rate
- 8%
- Years to maturity
- 5
- Yield (YTM)
- 8%
- Yield change
- +1%
What it shows you
- Bond price
- ₹1,000 (at par)
- Modified duration
- ≈ 4.0 years
- Price change (+1%)
- ≈ −4%
- New price
- ≈ ₹961
Where this is taught
A calculator gives you a number. These explain what the number means and when it misleads you.
- Market Basics11 minBond duration and convexity: how much a bond really movesYou know a bond falls when rates rise — duration tells you by how much. What modified duration measures, why longer and lower-coupon bonds are more sensitive, and what convexity adds.
- Market Basics12 minBonds and fixed incomeWhy bond prices move opposite to rates, what duration and credit risk actually mean, and how to buy government securities directly in India.
- Market Basics12 minDebt funds: credit risk, duration and the tax changeThe category most investors hold without understanding. Two risks, sixteen sub-categories, and why the 2023 tax change altered where they belong.
- Market Basics8 minDynamic bond funds: betting the manager can read interest ratesMost debt funds are pinned to a fixed slice of the maturity spectrum. A dynamic bond fund is free to roam the whole of it, lengthening or shortening as the manager reads interest rates — which makes your return a bet on how good that reading is.
- Technical Analysis13 minThe price that has to end at a numberYou open the chart of a listed NCD you hold and read it the way you read a share. It has fallen for four months, dropped vertically in one bar on no news, and its daily range keeps getting smaller. Three separate mechanisms, none of which is anybody buying or selling.