| Term | Purchase Price | Yield | After-Tax Yield |
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The US Treasury Bill Calculator helps investors estimate their earnings from T-Bills, which are short-term government securities. Whether you are looking for a safe investment or planning to diversify your portfolio, this tool provides quick and accurate results.
What is a US Treasury Bill?
A Treasury Bill (T-Bill) is a short-term government bond issued by the US Department of the Treasury. These securities are sold at a discount and mature at their full face value. The difference between the purchase price and the face value represents the investor's earnings.
Why Invest in Treasury Bills?
Treasury Bills are popular among investors because they:
- Are backed by the US government, making them a low-risk investment.
- Offer predictable returns.
- Provide short-term investment options (4, 8, 13, 26, or 52 weeks).
- Are exempt from state and local taxes.
How to Calculate Treasury Bill Returns?
The return on a T-Bill is calculated using the following formula:
Yield (%) = [(Face Value - Purchase Price) / Purchase Price] × (365 / Days to Maturity) × 100
Example Calculation
Let’s say you purchase a 26-week T-Bill with a face value of $10,000 at a discounted price of $9,800.
- Yield = [(10,000 - 9,800) / 9,800] × (365 / 182) × 100
- Yield = 4.12%
How to Use the US Treasury Bill Calculator?
Follow these steps to calculate your T-Bill returns:
- Enter the face value of the T-Bill.
- Input the purchase price.
- Select the number of days to maturity.
- The calculator will provide the yield percentage and total earnings.
Advantages of Using a Treasury Bill Calculator
With a T-Bill calculator, you can:
- Quickly estimate your investment returns.
- Compare different T-Bill maturity options.
- Plan investment strategies effectively.
- Make informed financial decisions.
Conclusion
The US Treasury Bill Calculator is an essential tool for investors looking to calculate their potential returns on short-term government securities. By using this calculator, you can make smart investment decisions and maximize your earnings while keeping risks low.
Try the US Treasury Bill Calculator today and start planning your financial future!