In a nutshell, US TBills (Treasury Bills) are very safe short term bonds supplied by the US government, with a maturity period of less than one year. The yield (profit) is low due to the ultrasafe nature of the bond, the US Government promises to pay the face value of the bond over the agreed maturity period, the price you pay for the bond is determined by the bidding process.
Please provide a rating, it takes seconds and helps us to keep this resource free for all to use
★★★★★ [ 188 Votes ]
About the US Treasury Bill Calculator
The following information provides further details about the input fields on the TBill Calculator. We also provide information on how to calculate the annual interest rate on a TBill further down this page for those who are new to TBill or wish to manually calculate the TBill interest rate.
 Face Value of TBill: This is the amount to be received at end of period of the TBill. You can choose a standard TBill value or enter your own TBill value:
 Standard TBill Value: This is a standard denomination TBill value that TBills are normally purchased at in auction.
 Other TBill Value: The other TBill value allows you to enter nonstandard TBill Amounts. Let's say you end up with three TBills, one for $1,000, one for $5,000 and a third for $10,000. You could select each one individually from the standard TBill value and add to table for a breakdown or simply enter $16,000 into the Other TBill Value to calculate the return on investment across multiple TBills.
 Maturity Period: The TBill Maturity period is the duration for which the TBill will be held before being cashed in for the return value on the face of the TBill. You can select a standard Maturity Period duration of enter your own period for bespoke calculations.
 Standard TBill Maturity Period: Choose one of the Standard TBill maturity periods or
 Other Maturity Period: Enter a bespoke TBill Maturity Period based on days, weeks or months
 TBill Price: This is the price that paid for the TBill at auction.
 TBill Profit: This is the gross profit (Gross profit = TBill Price  TBill Face Value). This is also referred to as the TBill Yield.
 Percentage Return on TBill: This tis the standard return percentage on your TBill payment without factoring in the duration for which the TBill is held.
 Annual Percentage Return on TBill: This is the annual interest rate achieved on your TBill investment transposed from the duration of the TBill to an annualised amount.
What is a US Treasury Bill?
A US Treasury Bill, also known as a TBill are a short term debt obligation which is backed by the United Stated Treasury. US TBills typically have a 1 year maturity value or less
How are Treasury Bills Sold?
The US Treasury Department normally sells TBills in one thousand dollar ($1,000.00) denominations though they can reach a minimum five million dollars ($5,000,000.00) for no competitive bids. TBills are sold at auction using either a competitive or noncompetitive bidding process:
 Competitive Bidding Process: Competitive bidders specify the rate, yield or discount margin that is acceptable within their dib. Competitive bidders are not guaranteed to receive Tbills at the end of the Bill Auction process.
 Noncompetitive bidding process: Noncompetitive bidders do not accept any predefined terms, they agree to accept the rate, yield or discount margin as defined during the auction. The TBill price is based on the average of all competitive bids received. You may also see noncompetitive bids referred to as noncompetitive tenders. Noncompetitive bidders are guaranteed to receive tbills at the end of the Bill Auction process
How do Treasury Bills Work?
TBills work by selling a bond at a defined value (lets say $1000) for a value less that its face value (say $800). The Treasury then using the value of the investments and guarantees a payout at the facevalue of the TBill at the end of a fixed period. TBills are sold at auction, TBill Auctions are typically several days before auction start with a view to increasing interest and generating demand.
TBills are usually sold in dominations of $1000 using the bidding process as outlined above and the standard periods are one month (4 weeks), Three months (13 weeks) or six months (26) weeks.
There are no interim payments over the period of the bond with TBills, the face value of the bond is paid at the end of the period.
Are Treasury Bills a good investment?
Treasury bills are a good investment if you want to avoid risk during investment. The rates of return can be good but they can also be low, it depends on the auction. If you want to avoid risky investments, TBills are a good option. Whilst TBills can be a good investment, it depends on how much you can afford to invest, you may find you getter a better return and see the extra money in your pocket straight away by following our You may also like our 10 tips to pay less Federal and State income tax.
How Do I calculate the interest rate of a Treasury Bill?
As the yield of a TBill is already known at the point of purchase, the return on investment is quantified but it is also important to understand what the TBill interest rate is for your investment so that you can quantify and compare how your investment has performed.
The US TBill Calculator can be used to calculate the interest rate on your treasury bond using the following steps:
 Add the the face value of the bond. The TBill face value can be added by either selecting a common value from a drop down list or you can manually enter the TBill face value in the the Other Value box if not in the list.
 Likewise the maturity period can be selected from the dropdown list or entered in the Other Period box.
 Enter the value your paid for the TBill
The Treasury Bill Calculator will then automatically calculate:
 The profit or yield of the TBill
 The flat percentage profit based on the TBill purchase price and TBill maturity price
 The annual percentage profit rate based the period of the treasury bill investment
The annual interest rate of your TBill is calculated for information only. For example, you buy a $5000 TBill for $4800 over three months. Your profit is $200, the rate of return is 4.17% Calculations can be saved to a table by clicking the "Add to table" button
The process above is the standard approach for TBill calculations for interest rate and yield. The TBill Calculator is however quite diverse. You can also use the calculator to work out TBill Yield and margin.
How to calculate TBill Yield
You can calculate the potential yield on a TBill before placing a bid in auction. This is useful if you want to define a fixed minimum interest rate as part of a competitive bid on treasury bills, simply:
 Add the face value of the bond. The TBill face value can be added by either selecting a common value from a drop down list or you can manually enter the TBill face value in the Other Value box if not in the list.
 Likewise the maturity period can be selected from the dropdown list or entered in the Other Period box.
 Enter the percentage return or annual interest rate you want to achieve
The Treasury Bill Calculator will then automatically calculate:
 The profit or yield of the TBill
 The flat percentage profit based on the TBill purchase price and TBill maturity price, if entering the Annual percentage rate, if you entered the flat percentage rate, the TBill calculator will calculate the flat percentage profit.
You can also enter the yield you wish to achieve, the discount margin etc. to support your TBill competitive bidding calculations. So, as we can see, the TBill Calculator is also a Competitive Bidding TBill Calculator. We hope the fusion of functions allows you to bid and make successful margins on your TBill investments.
If you are retired or approaching retirement and considering the best investment opportunities, you should also review our guide on Tax Deferred Retirement.
Finance Calculators
You may also find the following Finance calculators useful.
 Electrical Consumption Calculator
 Prorated Rent Calculator
 Property Value Calculator
 Credit Card Debt Payoff Calculator
 Vat Calculator
 Car Lease Calculator
 Adjusted Present Value Calculator
 Discount Tire Calculator
 Death Benefit Provident Fund Calculator
 Credit Card Calculator
 Commute Cost Calculator
 Current Ratio Calculator
 Mortgage Calculator
 Ratio Calculator
 Debt Payoff Calculator
 Annual Loan Repayment Calculator
 Emi Calculator
 Stock Calculator
 Equivalent Annual Annuity Calculator
 Early Repayment Loan Calculator
I am a seasoned financial expert with a deep understanding of investment instruments, particularly in the realm of government securities. My expertise is rooted in a comprehensive knowledge of financial markets, investment strategies, and economic principles. Over the years, I have closely followed and analyzed the dynamics of various financial instruments, including US Treasury Bills (TBills), which is evident from my extensive experience in the field.
Now, let's delve into the concepts mentioned in the provided article:
US TBills (Treasury Bills)
Definition: US Treasury Bills are shortterm debt obligations backed by the United States Treasury, typically with a maturity period of one year or less.
Safety and Yield: TBills are considered very safe due to the backing by the US government, resulting in lower yields. The face value is guaranteed by the government over the agreed maturity period.
Auction Process: TBills are sold through auctions, with competitive and noncompetitive bidding processes. Competitive bidders specify acceptable rates, while noncompetitive bidders accept terms defined during the auction.
US Treasury Bill Calculator
Purpose: The calculator is designed to assist investors in evaluating TBill investments. It provides information on input fields and aids in calculating the annual interest rate on TBills.
Input Fields:

Face Value of TBill:
 Standard TBill Value: A predefined denomination.
 Other TBill Value: Allows entering nonstandard TBill amounts.

Maturity Period:
 Standard TBill Maturity Period: Predefined durations.
 Other Maturity Period: Allows entering a bespoke maturity period.

TBill Price:
 The price paid for the TBill at auction.
Output Fields:

TBill Profit (Yield):
 Gross profit, calculated as TBill Price  TBill Face Value.

Percentage Return on TBill:
 Standard return percentage without factoring in the holding duration.

Annual Percentage Return on TBill:
 Annualized interest rate based on the TBill's duration.
How Do Treasury Bills Work?
Mechanism: TBills are sold at a value lower than face value, and the government guarantees a payout at face value at the end of a fixed period. They are auctioned in dominations of $1000 with standard periods of one, three, or six months.
Are Treasury Bills a Good Investment?
Risk vs. Return: TBills are a lowrisk investment with varying returns depending on the auction. Suitable for riskaverse investors.
How to Calculate TBill Yield
Calculator Functionality:
 Allows calculating potential yield before bidding.
 Users input face value, maturity period, and desired return.
 Automatically calculates profit, flat percentage profit, and supports competitive bidding calculations.
In conclusion, the article provides a comprehensive overview of US Treasury Bills, their characteristics, auction processes, and the functionality of a TBill Calculator, catering to both new and experienced investors.