Modified Duration Calculator

Calculate Macaulay duration, modified duration, and dollar duration to measure bond price sensitivity to interest rate changes.

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Important Financial Disclaimer

This calculator provides estimates based on standard financial formulas from verified references. Results are for informational and educational purposes only and should not be considered as professional financial, investment, or tax advice.

For important financial decisions such as loans, investments, mortgages, retirement planning, or tax matters, please consult with qualified financial advisors, certified financial planners, or licensed tax professionals who can review your specific situation.

Calculations may not account for all variables specific to your circumstances, local regulations, or current market conditions. Always verify results and consult professionals before making financial commitments.

Not a substitute for professional financial advice

Bond Details

$
%
%
years

Modified Duration measures the percentage price change for a 1% change in yield. Higher duration means greater interest rate sensitivity.

Modified Duration

7.922

years (price sensitivity measure)

Macaulay Duration
8.081 yrs
Bond Price
$1,081.76

Duration Metrics

Macaulay Duration8.0809 years
Modified Duration7.9225 years
Dollar Duration (DV01)$85.70
Effective Duration15.8450 years

Price Sensitivity

If rates rise by 1%:

Price falls by $85.70

(7.92% decrease)

If rates fall by 1%:

Price rises by $85.70

(7.92% increase)

Understanding Duration

  • - Longer maturity = Higher duration
  • - Higher coupon = Lower duration
  • - Higher yield = Lower duration
  • - Zero-coupon bonds have duration = maturity
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