Bond Price Calculator: Clean and Dirty Prices
See the clean and dirty prices behind the discounted payments.
Saving & investing
Macaulay Duration Calculator for Fixed-Rate Bonds
Measure the present-value-weighted timing of a bond's future payments. The calculation uses regular coupons and does not model the effective duration of bonds with embedded options.
Your numbers
How the calculation works
Macaulay duration expresses the weighted timing of a bond's future cash flows. Each payment receives a weight based on its present value, so early coupons can pull duration below the bond's remaining maturity.
Duration = sum[(discount periods ÷ coupon frequency) × present value of payment] ÷ dirty price.
Build the remaining cash flows
Generate regular coupon payments and add redemption to the last payment. Settlement must fall within the current coupon interval, and maturity must fit the regular grid.
Discount each payment
Convert the yield to the coupon-period basis and discount using the remaining fractional periods. Their sum is the dirty price used as the weighting denominator.
Weight payment timing
Multiply each payment's discounted weight by its time in coupon-period years. Summing those contributions gives Macaulay duration; modified duration is reported separately.
Worked example: Check Macaulay duration
Sample inputs demonstrate the method. They are not a forecast or product offer.
The first example has no coupons and redeems five years after settlement. Although redemption is discounted at 5%, it is still the only cash flow, so its entire weight gives a Macaulay duration of five years.
- Face value
- 1000
- Annual coupon rate (%)
- 0
- Coupons per year
- Annual
- Settlement date
- 2026-01-01
- Next coupon date
- 2027-01-01
- Maturity date
- 2031-01-01
- Discounting convention
- Compound fractional coupon periods
- Annual nominal yield (%)
- 5
- Currency for all amounts
- Euro (EUR)
Expected result
- Macaulay duration
- 5 years
Worked example: Check Macaulay duration
Sample inputs demonstrate the method. They are not a forecast or product offer.
- Face value
- 1000
- Annual coupon rate (%)
- 5
- Coupons per year
- Annual
- Settlement date
- 2026-01-01
- Next coupon date
- 2027-01-01
- Maturity date
- 2027-01-01
- Discounting convention
- Compound fractional coupon periods
- Annual nominal yield (%)
- 5
- Currency for all amounts
- Euro (EUR)
Expected result
- Macaulay duration
- 1 years
Understanding your result
Duration is a timing measure, not the date the bond matures. A zero-coupon bond has only the redemption payment, so all weight falls at that final time.
Modified duration describes local price sensitivity under this model. Neither duration accounts for default, changing cash flows or the exercise of embedded options.
Questions you might have
What does the result include?
Measure the present-value-weighted timing of a regular fixed-rate bond’s future payments.
Which limits should I check?
Regular coupons, no defaults or embedded-option adjustment.
Choosing the right inputs
- Next coupon date
- Supply the next contractual coupon date. Together with payment frequency, it anchors the regular schedule and the elapsed portion of the current coupon period.
- Annual nominal yield
- Use a nominal annual yield compounded at the coupon frequency, not an unrelated effective annual return.
- Discounting convention
- The simple final-period choice applies only when one payment remains. Otherwise the schedule uses compound discounting.
Common mistakes to avoid
- Do not substitute coupon rate for yield simply because the bond pays a fixed coupon.
- Irregular-issue coupons and optionality-adjusted effective duration are outside this calculation.
Assumptions to check
- Regular coupons, no defaults or embedded-option adjustment.
- All calculations run on your device. Figures are scenarios based on your inputs, not investment recommendations.
Sources and method
Read our calculation and testing approach.