What is the syntax for YIELDDISC in Excel?

The syntax for YIELDDISC is: =YIELDDISC(settlement, maturity, pr, redemption, [basis])

What are common errors with YIELDDISC?

#NUM! if maturity <= settlement

What is YIELDDISC used for?

YIELDDISC calculates the annual yield for a discounted security (like T-bills) based on its price. Unlike the discount rate, yield is based on the purchase price, giving a more accurate measure of return on investment.

How is YIELDDISC different from DISC?

DISC returns the discount rate (based on face value). YIELDDISC returns the yield (based on purchase price). For a $98 purchase of $100 face: DISC = 2/100 = 2%, YIELDDISC = 2/98 = 2.04%. Yield is always higher and more meaningful for investors.

How do I compare discount security returns to bonds?

Use YIELDDISC to get the yield, which is comparable to bond yields. A T-bill at $97.50 for $100 face, 180 days to maturity: =YIELDDISC(today, today+180, 97.50, 100) gives annualized yield comparable to bond YTM.

Financial

YIELDDISC Function in Excel

Q: What is the YIELDDISC function in Excel?

Returns the annual yield for a discounted security.

Q: What are common errors with YIELDDISC?

#NUM! if maturity <= settlement

Q: What is YIELDDISC used for?

YIELDDISC calculates the annual yield for a discounted security (like T-bills) based on its price. Unlike the discount rate, yield is based on the purchase price, giving a more accurate measure of return on investment.

Q: How is YIELDDISC different from DISC?

DISC returns the discount rate (based on face value). YIELDDISC returns the yield (based on purchase price). For a $98 purchase of $100 face: DISC = 2/100 = 2%, YIELDDISC = 2/98 = 2.04%. Yield is always higher and more meaningful for investors.

Q: How do I compare discount security returns to bonds?

Use YIELDDISC to get the yield, which is comparable to bond yields. A T-bill at $97.50 for $100 face, 180 days to maturity: =YIELDDISC(today, today+180, 97.50, 100) gives annualized yield comparable to bond YTM.

Returns the annual yield for a discounted security.

Syntax

=YIELDDISC(settlement, maturity, pr, redemption, [basis])

Arguments

settlement (required): Settlement date
maturity (required): Maturity date
pr (required): Price per $100 face value
redemption (required): Redemption value per $100
basis (optional): Day count basis

Examples

=YIELDDISC("2/16/2024", "3/1/2024", 99.795, 100) - Discount yield - Result: 0.0528

YIELDDISC modeling tips

Align rate and period units (annual rate ÷ 12 for monthly models).
Use consistent cash-flow signs (outflows negative, inflows positive).
Hub: [Financial functions guide](/guides/excel-financial-functions-guide/).

Common errors

#NUM! if maturity <= settlement

Use cases

T-bill yield
Discount securities
Money market

Frequently asked questions

What is YIELDDISC used for? YIELDDISC calculates the annual yield for a discounted security (like T-bills) based on its price. Unlike the discount rate, yield is based on the purchase price, giving a more accurate measure of return on investment.
How is YIELDDISC different from DISC? DISC returns the discount rate (based on face value). YIELDDISC returns the yield (based on purchase price). For a $98 purchase of $100 face: DISC = 2/100 = 2%, YIELDDISC = 2/98 = 2.04%. Yield is always higher and more meaningful for investors.
How do I compare discount security returns to bonds? Use YIELDDISC to get the yield, which is comparable to bond yields. A T-bill at $97.50 for $100 face, 180 days to maturity: =YIELDDISC(today, today+180, 97.50, 100) gives annualized yield comparable to bond YTM.

Editorial review

Reviewed by Excel.Directory Editorial Team. Updated May 2026.