# Return on Bond Calculator

## About Return on Bond Calculator (Formula)

The Return on Bond Calculator is a tool used to estimate the return on investment for a bond based on the bond’s purchase price and current value.

The return on bond is calculated using the following formula:

Return on Bond (ROB) = ((Current Value – Purchase Price) / Purchase Price) * 100

To calculate the return on bond, the difference between the current value and the purchase price of the bond is divided by the purchase price. This value is then multiplied by 100 to express the result as a percentage.

For example, if the bond was purchased for \$1,000 and its current value is \$1,200, the return on bond would be calculated as follows:

Return on Bond = ((\$1,200 – \$1,000) / \$1,000) * 100 = 20%

This means that the bond has provided a return of 20% based on the increase in its value.

The Return on Bond Calculator provides a convenient way to assess the profitability of bond investments by inputting the purchase price and current value of the bond. It helps investors evaluate the performance of their bond holdings and make informed decisions regarding their investment portfolio.

By utilizing the Return on Bond Calculator, investors can gain insights into the percentage return on their bond investments. This information assists in comparing the performance of different bonds, evaluating investment strategies, and making adjustments to their investment portfolio accordingly.

The Return on Bond Calculator facilitates efficient financial analysis, enabling investors to gauge the profitability of their bond investments and make informed decisions regarding their investment strategies.