Calculate how much you'll earn from a Treasury Bill. Estimate yield, interest earned, EAY, and price for any T-Bill term from 4 to 52 weeks.
Enter either Purchase Price or Discount Rate — the other will be calculated automatically.
An investor buys a $10,000 13-week T-Bill (91 days) for $9,850.
Discount: $150.00
Annualized Yield: 6.00%
Interest Earned: $150.00
Effective Annual Yield: 6.17%
Formula: ($150 ÷ $9,850) × (360 ÷ 91) = 6.00% annualized yield.
An investor buys a $25,000 26-week T-Bill (182 days) at a 5.25% discount rate.
Purchase Price: $24,331.25
Interest Earned: $668.75
Annualized Yield: 5.43%
Price = Face Value × (1 − Discount Rate × Days ÷ 360).
A comparison between a $50,000 4-week T-Bill (28 days) purchased at $49,800 vs a high-yield savings account at 4.50% APY.
T-Bill Yield: 5.18% annualized
T-Bill Interest: $200.00 in 28 days
Savings Interest (4.50%): $172.60 in 28 days
T-Bills often offer higher yields than savings accounts, plus they are exempt from state and local taxes.
Treasury Bills (T-Bills) are short-term U.S. government securities sold at a discount to face value. You pay less upfront and receive the full face value at maturity. T-Bills use a 360-day year (bank discount basis) for yield calculations.
Shortest term. Great for cash management and emergency reserves with minimal interest rate risk.
Introduced in 2018. Popular for rolling short-term cash with slightly better yields than 4-week.
The most popular term. Excellent balance between yield and liquidity for regular investors.
Six-month bill with higher yields than short-term. Great for semi-annual cash flow planning.
Highest yield among standard T-Bills. Ideal cash equivalent for investment portfolios.
Virtually risk-free, backed by the full faith and credit of the U.S. government. Interest exempt from state and local taxes.
T-Bills use the bank discount basis (360-day year) rather than 365-day year — a convention inherited from historical banking practices. The 360-day convention slightly understates the actual annualized yield. To get the true annual return, use the Effective Annual Yield (EAY), which compounds over 365 days: (Face Value ÷ Purchase Price)(365 ÷ Days) − 1.
A Treasury Bill (T-Bill) is a short-term U.S. government debt obligation sold at a discount from face value. You pay less upfront and receive the full face value at maturity — the difference is your return. T-Bills mature in 4 to 52 weeks and are backed by the full faith and credit of the U.S. government, making them virtually risk-free. Interest is exempt from state and local income taxes, boosting after-tax returns.
Backed by the U.S. government, your principal is guaranteed when held to maturity, making T-Bills the safest short-term investment available.
T-Bills trade in a deep secondary market. You can sell before maturity if you need cash, though prices may fluctuate with interest rates.
T-Bill interest is exempt from state and local income taxes — a significant boost for investors in high-tax states.
T-Bills provide stability as a cash equivalent in diversified portfolios, offering low-risk returns.
Our T-Bill Calculator answers "How much will I earn from a Treasury Bill?" in two modes:
Select a term (4, 8, 13, 26, or 52 weeks — or enter custom days) and purchase date. Results include maturity date, a full term comparison table, and a step-by-step formula breakdown.
Calculated using the 360-day bank discount convention — the standard way T-Bill yields are quoted and compared.
Face value minus purchase price. This is your profit at maturity in actual dollars.
True compound annual return using 365 days. Accounts for reinvestment for a more realistic picture.
See how all standard T-Bill terms perform at the same discount rate or yield side by side.
T-Bills typically yield more than savings accounts and offer tax advantages. Savings accounts offer immediate liquidity with no minimum term.
CDs may have competitive rates but are subject to state tax. T-Bills have better secondary market liquidity and state tax exemption.
MMFs invest in T-Bills but charge expense ratios. Direct T-Bill ownership avoids these fees for higher net returns.
Notes (2-10yr) and Bonds (20-30yr) pay semi-annual interest. T-Bills are discount-based with all return at maturity.
⚠️ Important Disclaimer: This T-Bill Calculator is for informational and educational purposes only. It provides estimates using standard T-Bill formulas (360-day bank discount basis). Actual auction results may differ based on market conditions and Treasury rules. This calculator does not provide financial advice. Always verify with TreasuryDirect, your broker, or a financial advisor before making investment decisions.