Bond Carry & Roll-Down Calculator
Expected 1-year return if the curve doesn't move: coupon carry over funding plus the roll-down the bond earns sliding toward shorter yields.
Formula
On an upward curve a bond ages into lower yields, gaining price even if rates never move — that roll-down plus coupon-over-funding is the strategist's default expected return. Steep curve segments (the 'belly') maximize it; inverted curves make carry negative.
Not financial advice — for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
Disclaimer: This tool is for general informational and estimation purposes only and is not professional financial, tax, accounting or legal advice. All figures are estimates — verify with a qualified professional before making decisions. Read the full disclaimer.
Need bond carry & roll-down calculator results fast? Analysts, founders, traders and finance professionals use the Bond Carry & Roll-Down Calculator to skip the spreadsheet and get a defensible answer in one step — free, private and instant.
About Bond Carry & Roll-Down Calculator
Expected 1-year return if the curve doesn't move: coupon carry over funding plus the roll-down the bond earns sliding toward shorter yields. On an upward curve a bond ages into lower yields, gaining price even if rates never move — that roll-down plus coupon-over-funding is the strategist's default expected return. Steep curve segments (the 'belly') maximize it; inverted curves make carry negative. The governing relationship is E[r] ≈ (y − funding) + D × (y_t − y_{t−1}). The Bond Carry & Roll-Down Calculator computes entirely in your browser — free, private (your figures never leave your device) and instant, recalculating live as you change any input.
How to use Bond Carry & Roll-Down Calculator
- 1Enter Bond yield (maturity t) (%), Yield at maturity t−1 (%), Duration after 1 year (years), Funding / repo rate (%) into the Bond Carry & Roll-Down Calculator.
- 2The result is computed automatically using E[r] ≈ (y − funding) + D × (y_t − y_{t−1}) — there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use Bond Carry & Roll-Down Calculator?
- ✓Computes bond carry & roll-down calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter stay private
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
What is the formula behind the Bond Carry & Roll-Down Calculator?+
Bond Carry & Roll-Down Calculator uses E[r] ≈ (y − funding) + D × (y_t − y_{t−1}). On an upward curve a bond ages into lower yields, gaining price even if rates never move — that roll-down plus coupon-over-funding is the strategist's default expected return. The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the Bond Carry & Roll-Down Calculator need?+
Enter Bond yield (maturity t) (%), Yield at maturity t−1 (%), Duration after 1 year (years), Funding / repo rate (%) and the result updates immediately — there is no button to press. Change any value to model a different scenario in real time.
Is the Bond Carry & Roll-Down Calculator free, and is my data private?+
Yes — it is completely free with no sign-up or usage limit, and it runs entirely in your browser, so the numbers you enter are never uploaded or stored on any server. It is for informational and analytical use, not financial advice.
What should I watch out for when using the Bond Carry & Roll-Down Calculator?+
Steep curve segments (the 'belly') maximize it; inverted curves make carry negative.
What is the Bond Carry & Roll-Down Calculator based on?+
The method follows authoritative sources: Ilmanen, Expected Returns — carry and roll. The formula and references are shown on the page so you can verify and cite the result.
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