Calculate the Accrued Interest and Dirty Price of Your Bond Instantly
Understanding how accrued interest and dirty price affect your bond’s market value is key for investors.
Use our Bond Accrued Interest & Dirty Price Calculator to estimate the total price you’ll pay or receive when trading bonds between coupon dates.
The accrued interest represents the interest earned by the seller since the last coupon date but not yet paid.
Formula:
Accrued Interest = Coupon Payment × (Days Since Last Coupon / Days in Coupon Period)
Dirty Price = Clean Price + Accrued Interest
This means the buyer pays both the bond’s market value and the interest accrued since the last payment.
Suppose you have a bond with:
Face Value: $1,000
Annual Coupon Rate: 5%
Settlement Date: 12-Nov-2025
Last Coupon Date: 15-Aug-2025
Clean Price: $980
The accrued interest would be approximately $12.33, making the dirty price = $992.33.
It’s the interest earned from the last coupon payment date up to the settlement date. The buyer compensates the seller for this portion.
Clean price excludes accrued interest, while dirty price includes it. Dirty price reflects the total amount the buyer pays.
Most bonds pay interest semi-annually, but some pay annually or quarterly.
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