Return on Treasury Bills Calculator

Calculate the return on Treasury Bills by entering face value, purchase price, and days to maturity.

Input Parameters

Calculation Results

Calculation Formula

Annualized Return = [(Face Value - Purchase Price) / Purchase Price] × (365 / Days to Maturity)

Where:
Face Value: The nominal value of the Treasury Bill
Purchase Price: The amount paid to purchase the Treasury Bill
Days to Maturity: The number of days until the Treasury Bill expires

Holding Period Return (%)

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Annualized Return (%)

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Return on Treasury Bills Calculator Usage Guide

Learn how to use the Return on Treasury Bills Calculator and understand its working principles

How to Use This Calculator

  1. Enter the face value of the Treasury Bill (the nominal value)
  2. Enter the purchase price you paid for the Treasury Bill
  3. Enter the number of days until the Treasury Bill matures
  4. Click the "Calculate" button to see the results

Understanding the Results

The calculator provides two key metrics:

  • Holding Period Return (%): The return you earn during the time you hold the Treasury Bill until maturity
  • Annualized Return (%): The annualized return based on the holding period return, assuming the investment would have continued for a full year

Example

Suppose you purchase a $1,000 Treasury Bill for $980 with 90 days to maturity:

At maturity, you will receive $1,000, giving you a $20 profit.

Holding period return = ($20 / $980) × 100 = 2.04%

Annualized return = (2.04% / 90 days) × 365 days = 8.33%

Principles of Treasury Bills

Treasury Bills (T-Bills) are short-term debt securities issued by the U.S. government with maturities of one year or less. They are considered very safe investments because they are backed by the full faith and credit of the government.

The return on Treasury Bills is typically lower than longer-term government bonds but provides a safe haven for investors looking for short-term fixed-income investments with minimal risk of default.