Free Treasury bill return calculator. Convert T-bill discount prices to actual yield, compare 4-week to 52-week maturities, and see your real return on Treasury bills.
The Treasury Bill Return Calculator converts T-bill purchase prices into actual yields. Treasury bills are sold at a discount to their face value, which makes comparing them to other savings products confusing. This tool calculates both the discount yield and the investment yield so you can make direct comparisons.
Enter the face value, purchase price, and days to maturity for any T-bill from 4-week to 52-week terms. The calculator shows your dollar profit, discount yield (bank discount basis), investment yield (bond equivalent yield), and the annualized return you can compare to savings account APYs and CD rates.
T-bills are backed by the full faith and credit of the US government, making them among the safest investments available. Understanding their true yield helps you decide whether to use them instead of savings accounts or CDs for short-term cash management. Treasury bills are backed by the full faith and credit of the U.S. government, making them one of the safest short-term investments available. This calculator converts the discount rate to an actual yield so you can compare T-bill returns directly with bank products.
T-bill pricing uses a discount convention that makes it hard to compare directly to APY-based savings products. This calculator bridges that gap by converting the discount price into a familiar annualized yield. It also calculates the actual dollar return so you know exactly what you will earn on each purchase.
Discount yield = ((Face – Price) / Face) × (360 / days) Investment yield (BEY) = ((Face – Price) / Price) × (365 / days) Dollar profit = Face – Price Holding period return = (Face – Price) / Price × 100% where Face = par value, Price = purchase price, days = days to maturity
Result: Investment yield: 2.56% | Dollar profit: $125
A $10,000 T-bill purchased for $9,875 with 182 days to maturity yields a profit of $125. The discount yield is 2.47% (using the 360-day bank convention). The investment yield (bond equivalent yield) is 2.54% (using 365-day actual convention). This BEY is the number to compare against savings account APYs.
Unlike bonds that pay periodic interest, T-bills are sold below face value and return the full face value at maturity. The difference is your profit. This discount pricing convention dates back to early banking and can be confusing when comparing to interest-bearing accounts. The investment yield conversion in this calculator translates the discount into a familiar annualized rate.
In many rate environments, T-bills offer comparable or slightly higher yields than the best high-yield savings accounts. The key differences are: T-bills have a fixed maturity date (less flexible), are state-tax exempt (advantage in high-tax states), and offer a locked-in rate (no risk of rate drops during the term). For cash you will not need for 4–52 weeks, T-bills can be an excellent alternative.
Similar to CD laddering, you can create a T-bill ladder by purchasing bills with staggered maturities. For example, buy equal amounts of 4-week, 13-week, 26-week, and 52-week bills. As each matures, reinvest at the longest maturity. This provides regular liquidity while capturing longer-term yields.
Discount yield uses the face value as the denominator and a 360-day year (bank convention). Investment yield (bond equivalent yield or BEY) uses the purchase price as the denominator and a 365-day year. BEY is higher and more comparable to APY on savings accounts.
T-bills are short-term government securities you buy at auction and hold to maturity. They offer a fixed return with no interest rate risk if held to maturity. Savings accounts offer daily liquidity and variable rates. T-bills may offer slightly higher yields but with less flexibility.
The US Treasury auctions T-bills with maturities of 4, 8, 13, 17, 26, and 52 weeks. Some maturities are auctioned weekly and others monthly. You can find the auction schedule on TreasuryDirect.gov.
T-bill interest is subject to federal income tax but exempt from state and local taxes. This can be a significant advantage in states with high income taxes like California or New York, effectively boosting the after-tax return compared to fully-taxable savings account interest.
Yes, T-bills can be sold on the secondary market before maturity through a brokerage account. The price will depend on current market rates. If rates have risen since your purchase, you may receive less than you paid (a loss). If rates have fallen, you may receive more.
The minimum purchase on TreasuryDirect is $100 in $100 increments. Through brokerages, minimums vary but are typically $1,000. There is no maximum for non-competitive bids up to $10 million per auction.