Treasury bill calculator
Treasury bills are sold at a discount: you pay less today and receive the face value at maturity. Enter the face value, the discount rate and the tenor.
How it's calculated
- Price today = face value × (1 − discount rate × days ÷ 365).
- What you earn is the face value minus the price.
- The true yield is higher than the discount rate, because you earn it on the price you paid, not on the face value: yield = discount rate ÷ (1 − discount rate × days ÷ 365).
An example
For ₦1 million at 18% for 364 days, you pay ₦820,493.15 and earn ₦179,506.85, a true yield of about 21.94%.
Frequently asked questions
Where do I find the discount rate?
It is set at the auction (the stop rate). Your bank or broker quotes it when you buy.
Why is the yield higher than the rate?
The discount is worked out on the face value but you only invest the lower price, so your return on the money you put in is higher.
Are treasury bills safe?
They are short-term debt of the Federal Government. Inflation can still reduce what the money is worth.
Key terms
- Face value
- The amount paid back at maturity.
- Discount rate
- The yearly rate used to work out the price below face value.
- Stop rate
- The rate at which an auction clears.
Up-to-date official data
We check the official sources automatically, every day.