T-Bill Calculator (Price and Rate of Return)

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T-Bill Calculator

The T-Bill calculator provides the value of a T-Bill based on the interest rate applied and the duration of the investment before the T-Bill reaches maturity.

You can find more information on T-Bills below the T-Bill calculator. If you are thinking of investing in T-Bills but don't think you have the spare money to invest, you should take a look at our Daily Expense Savings Calculator which helps to identify areas where you can save money each day and, what this money can do for your when invested wisely.

T-Bill Calculator (Price and Rate of Return)
Face Value of T-Bill Amount to be received at end of period
Other Value
Maturity Period Select maturity period from drop-down list, or enter details if not in list
Other Period
Price Price paid for the T-Bill
Profit Yield, or profit
Percentage Percentage return for price paid
Annual Percentage Percentage return calculated per annum

You can refine the t-bill calculations by controlling the number of decimal places that the calculator calculates to. The default is 2 decimal places.

What are T-Bills and how do T-Bills work?

T-Bills are discounted bonds. In simple terms this mean the T-Bills sell below value and mature at their value. When reviewing T-Bills, the higher the interest rate is, the less the T-Bill will be and vice-versa.

T-Bills can be set up by making single investments or repeat purchasing by directly funding from your checking account. T-Bills can seem complex, an easy way to understand T-Bills is with an example. Let's say you want to buy a T-bill with a $1,000.00 investment. You will actually be charged $980.00 or so, you then receive the $1000.00 when the T-Bill reaches maturity. The $980 figure is calculated based on the discount rate, basically subtracting the interest required to make the $1,000.00. T-Bills function as though you are aiming at a final amount.

T-Bills may seem like a low return investment but, when you consider the return across a year, that can translate into a good return on investment, particularly if you re-invest your money back into T-Bills. This provides a compound interest savings approach

T-Bills - Food for Thought

The downside of T-Bills is that the discount rate isn't published ahead of the investment and the rates don't always keep track with inflation. T-Bills do however allow the reinvestment of American money back into the American economy meaning less foreign borrowing and a stronger Dollar. That is probably not your biggest concern when investing your money but a strong dollar does drive better interest rates and mean cheaper imports (good if you like your technology from the Far East).

You can discover more about T-Bills and how to purchase T-Bills at the Treasury Direct website [Opens in a new tab].

T-Bills - Share your expereince and feedback

We hope the T-Bill Calculator and supporting information are useful for you when considering investing in T-Bills or calculating the value of your T-Bills. Have you have had good or bad experiences with T-Bills we would be grateful if you could share your experience to help those who are considering investing in T-Bills but are unsure if they are a good investment. If you would like to add anything to the information provided about T-Bills or have any general comments in regard to T-Bills, please leave your feedback below.