# Treasury Bills Calculator

Are you tired of manually calculating the yield of your treasury bill investments?

Investing in Treasury Bills is a safe investment offered by the United States Government with low risks.

5.5%

Pre-Tax Returns
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Post-Tax Returns
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* Calculator assumes highest income rate per state (Source: Rich States, Poor States). Savings may be less if a lower income rate applies. High-yield savings rate defaults to average of the best high-yield savings accounts, compiled by NerdWallet.com (7/25/23). Public does not provide investment, tax or legal advice. You should consult your legal, tax, or financial advisors before making any financial decisions.
• Calculating the yield on a Treasury Bill can help investors in setting a fixed minimum interest rate as part of a competitive bid on treasury bills, here are a couple of terms you need to know about

Treasury duration = total time until the treasury bill matures and yields returns
US Treasuries rate = current interest rate that you can lock your T-bill for a certain maturity period
Purchase Amount = face value or total amount invested that is locked in at a certain rate

Treasury bills have a maturity period of less than one year and can be purchased for a price under the face value stated on the bill. Investors can buy short-term Treasury bills on TreasuryDirect (U.S. government’s portal) or through brokers like Public and banks.

The current T-bill rate for 6 months is 5.5% Investors can calculate the return on investment by considering the purchase price, sale price, and the number of days between the purchase and sale.

Public’s Treasury Bill Calculator offers reliable and quick results by inputting your investment amount, term length, and interest rate. This allows you to make informed decisions. Try it now and watch your investment journey begin!

## How to calculate T-Bill yield?

Calculating potential yield on a T-Bill before placing a bid in auction can be helpful in setting a fixed minimum interest rate as part of a competitive bid on treasury bills.

To calculate the yield on a T-Bill, you will need the following information:

• The face value of the T-Bill
• The discount rate (the amount of interest paid at maturity)
• The current market price for the T-Bill

Once you have this information, you can use the T-bill calculator above to calculate the yield.

### Example

• Let’s say you want to buy \$1,000 worth of 6-month T-bills, offering an annual yield rate of 5%.

5% annualized yield on \$1,000 over a period of 6 months is \$25. Because Treasury bills are purchased at a discount to their face value, you’ll pay about \$975. Then, when they reach maturity after 6 months, you’ll get the full \$1,000, netting you a \$25 profit.

Invest in Treasury Bills on Public

Move your cash in and out of US Treasuries easily with a Treasury account

## What are Treasury Bills & how do they work?

The US Treasury Bill is a popular and safe investment that is offered by the United States Government. With comparatively low risks, these bonds are ideal for those who are looking for a secure way to store their money in the short term. Treasury bills have a maturity period of less than one year.

The price of the bill varies based on competitive bidding situations. When you purchase one, you will be paying a price under the face value stated on the bill. You will not receive any payment during the set period, but at its end you will be paid out this amount.

### Did you know?

• This security is backed by the full faith and credit of the U.S. government and can be purchased and sold in groups of \$1,000 up to millions of dollars with varying maturity terms of four, eight, thirteen, seventeen, twenty-six, and fifty-two week periods available.

## How to buy US Treasury bills?

You can buy short-term Treasury bills on TreasuryDirect (U.S. government’s portal). Brokers like Public and banks also offer options to buy and sell T-bills. If you choose not to hold your Treasuries until maturity, you can sell them only through a broker or bank.

1. One of the easiest ways to buy T-bills is with a Public Treasury Account. Simply move your cash into Public by linking a bank account or making a debit card deposit, make an account, and you’ll be able to lock in a 5.5% yield*.

2. In a competitive auction on TreasuryDirect.gov, the US government’s auction site. Bidders set the purchase price of T-bills by putting out offers to buy the bills.

3. In a non-competitive auction on Treasury Direct. T-bills are sold to bidders at a pre-fixed rate. Treasury bill rates are assigned based on the average purchase price of T-bills in competitive auctions.

## How do Treasury Bills Work?

The U.S. Treasury department provides Treasury securities, including Treasury Bills, with short-term maturity as a means of funding government projects.

Investors can buy Treasury bills from the government at a discounted price and then redeem them when they reach maturity, which can vary from a few weeks to one year.

If a Treasury bill is cashed out before maturity, the owner has the option to resell it on the secondary market. When Treasury bills reach maturity, investors are given the entire face value by the federal government. The investment income earned is based on the discounted amount at the time of purchase.

Invest in Treasury Bills on Public

Move your cash in and out of US Treasuries easily with a Treasury account

## FAQs

How to calculate the duration of a Treasury bill?

To calculate the duration of a Treasury bill, you need to consider the time to maturity and the coupon rate. Duration measures how T-bill prices are affected by interest rate changes. Hence the duration of a Treasury bill is the time left until it matures.

What is the current T-bill rate for 6 months?

The current T-bill rate for 6 months is 5.5%*

How to calculate return if you sell a T-Bill before the maturity date?

To calculate the return if you sell a T-Bill before the maturity date, you need to consider the purchase price, the sale price, and the number of days between the purchase and sale. The formula for calculating the return is: [(Sale Price – Purchase Price) / Purchase Price] x (Days Held / 365).