Effective Duration Calculator
Result
Effective Duration Calculator The Effective Duration Calculator estimates a bond's price sensitivity to interest-rate changes using prices under small yield shifts. Enter the prices if yield falls and rises, the current price, and the yield change. — free online calculator.
Formula
- Effective Duration Calculator calculates its result from Price when yield falls, Price when yield rises, Initial price, Yield change. It uses the formula (Pminus-Pplus)/(2*P0*dy). Change any input to recalculate the result instantly.
- The main inputs are Price when yield falls, Price when yield rises, Initial price, Yield change. Enter them in the units and format shown in the calculator.
- Use monetary amounts, rates and time periods exactly as labeled; the result reflects the assumptions entered on this page.
- Changing any input above recalculates the result with the same calculation engine used by this page.
Example: Effective Duration
- Price when yield falls: 102
- Price when yield rises: 98
- Initial price: 100
- Yield change: 0.01
Using Price when yield falls = 102, Price when yield rises = 98, Initial price = 100, Yield change = 0.01, the calculated result is 2.
Sample result: Calculating…
Frequently asked questions
What does the Effective Duration calculate?
Effective Duration Calculator The Effective Duration Calculator estimates a bond's price sensitivity to interest-rate changes using prices under small yield shifts. Enter the prices if yield falls and rises, the current price, and the yield change. — free online calculator.
Which values should I enter?
Enter Price when yield falls, Price when yield rises, Initial price, Yield change using the units and format shown beside each field.
What formula does this calculator use?
The calculator uses the following relationship: (Pminus-Pplus)/(2*P0*dy).
Why might my result differ from another source?
Results can differ when another source uses different units, rounding rules, conventions or assumptions. Compare the inputs and definitions before comparing results.
Does the result update automatically?
Yes. Changing an input updates the result using the same calculation engine shown on this page.