Discount yield (360-day)
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Treasury Bill Yield Calculator
Both the 360-day bank discount yield and the 365-day bond-equivalent yield from face value, purchase price, and days to maturity on a T-bill.
Page updated 2026-09-14.
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Bond-equivalent yield (365-day)
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Two ways to state the same T-bill return
Treasury bills are sold at a discount to face value and pay no coupon -- your entire return is the gap between what you pay and the $1,000 (or other face value) you receive at maturity. That return can be stated as a discount yield (the market convention) or a bond-equivalent yield (comparable to other bonds).
Defaults: $1,000 face value bought for $980, maturing in 91 days. Discount yield = (1,000 - 980) / 1,000 x (360 / 91) = 7.91%. Bond-equivalent yield = (1,000 - 980) / 980 x (365 / 91) = 8.19%.
When to use which figure
Use discount yield when comparing against how T-bills are quoted at auction. Use bond-equivalent yield when comparing against a CD, corporate bond, or muni's tax-equivalent yield from the Municipal Bond Tax-Equivalent Yield Calculator, since those are typically quoted on a 365-day basis too.
Frequently Asked Questions (FAQ)
How is T-bill yield calculated?
Discount yield (the convention T-bills are quoted in) = (face value - price) / face value x (360 / days to maturity). Bond-equivalent yield = (face value - price) / price x (365 / days to maturity). Defaults: $1,000 face, $980 price, 91 days gives a 7.91% discount yield and an 8.19% bond-equivalent yield.
Why are there two different yields?
Discount yield is the traditional convention T-bills are quoted in on a 360-day year, dividing the gain by face value. Bond-equivalent yield restates that on a 365-day year and divides by the price you actually paid, which is the more accurate return figure and the one comparable to a coupon bond's yield.
Why is bond-equivalent yield higher than discount yield?
Two reasons: BEY uses 365 days instead of 360, and it divides by the (lower) purchase price instead of face value, both of which push BEY above the discount yield for the same T-bill.
What is "days to maturity"?
The number of calendar days between your purchase date and the bill's maturity date. T-bills commonly carry 4, 8, 13, 17, 26, or 52-week terms.
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