Investing & Wealth

Treasury Bill (T-Bill) Calculator

Calculate purchase price, discount rate, investment yield (BEY), and profit on US Treasury Bills (4, 8, 13, 26, and 52-week T-Bills).

What this calculator does

The Treasury Bill (T-Bill) Calculator estimates your result instantly from the values you enter, using standard investing & wealth formulas. Calculate purchase price, discount rate, investment yield (BEY), and profit on US Treasury Bills (4, 8, 13, 26, and 52-week T-Bills). Calculations run in your browser, so nothing you type is sent to a server, and the output is an estimate for planning rather than financial advice.

About Treasury Bill (T-Bill) Calculator

The Treasury Bill (T-Bill) Calculator computes purchase price, total dollar interest, Bank Discount Rate, and Investment Yield (Bond Equivalent Yield / APY) for short-term US Treasury Bills sold at a discount to face value.

Formula & Mathematical Calculation

T-Bill Purchase Price = Face Value × [ 1 - ( Discount Rate % × Days to Maturity / 360 ) ]

Investment Yield (BEY %) = [ ( Face Value - Purchase Price ) / Purchase Price ] × ( 365 / Days to Maturity ) × 100

Calculation Example

$10,000 26-Week (182-Day) T-Bill @ 5.20% Discount Rate: Purchase Price = $9,737.11 → Interest Earned = $262.89 | Investment Yield (BEY) = 5.41% APY (State & Local Tax Exempt!).

Key Benefits

  • Calculates exact purchase price and interest on US Treasury Bills
  • Converts Bank Discount Rate into true Bond Equivalent Yield (BEY)
  • Supports 4-week, 8-week, 13-week, 26-week, and 52-week T-Bills
  • Accounts for state and local income tax exemption benefits
  • 100% free government bond tool

How to Use this Calculator

  1. Enter Total Face Value
    Input total par amount (e.g. $10,000).
  2. Select T-Bill Maturity Term
    Choose 4, 8, 13, 17, 26, or 52 weeks.
  3. Enter Auction Discount Rate (%)
    Input quoted discount rate.
  4. Calculate Yield
    Click Calculate to view discount price, dollar return, and true APY.

Assumptions & Limitations

What the calculation assumes

  • Every value you enter is treated as an exact, known amount.
  • Rates and contributions are assumed to stay constant for the whole period unless the form asks for them separately.
  • Results use standard financial formulas and ignore fees, penalties and promotional terms that are not entered above.
  • Inflation, tax changes and market volatility are not modelled unless a field for them is provided.
  • Amounts are unit-agnostic: results are returned in the same currency you enter.

What it does not cover

  • Treasury Bill (T-Bill) Calculator produces estimates for education and planning, not a quote, offer or professional advice.
  • Real-world outcomes differ when fees, taxes, rounding rules or provider-specific terms apply.
  • Local regulations and tax rules vary by country and change over time; verify current rules for your jurisdiction.
  • Figures are only as accurate as the inputs you supply — check them before acting on the result.
  • For decisions with lasting financial impact, confirm the numbers with a qualified professional.

Frequently Asked Questions

Yes. Interest earned on US Treasury securities (T-Bills, T-Notes, T-Bonds) is 100% exempt from state and local income taxes, though subject to federal income tax.