TreasuryDirect Calculator 2026 - Calculate Treasury Securities
Calculate returns and yields for U.S. Treasury securities with our comprehensive TreasuryDirect calculator. Get accurate valuations for Treasury Bills, Notes, Bonds, TIPS, and Savings Bonds with current January 2026 rates from the U.S. Department of the Treasury.
💰 Current U.S. Treasury Rates (January 2026):
• 3-Month T-Bill: 3.65% | 6-Month T-Bill: 3.58%
• 2-Year Note: 3.47% | 10-Year Note: 4.19%
• 30-Year Bond: 4.86%
• Series EE Savings Bonds: 2.50% fixed
• Series I Savings Bonds: 4.03% composite rate
All rates subject to change. Actual auction results may vary.
TreasuryDirect Investment Calculator
Your Investment Results
What is TreasuryDirect?
TreasuryDirect is the official online platform of the U.S. Department of the Treasury where individual investors can purchase, manage, and redeem U.S. government securities directly without going through brokers or banks. Established in 2002, TreasuryDirect provides secure, electronic access to the full range of Treasury securities including bills, notes, bonds, TIPS, and savings bonds.
By purchasing directly through TreasuryDirect, investors avoid broker commissions and fees while gaining the security of holding U.S. government-backed securities. All securities are held electronically in your TreasuryDirect account, eliminating the risk of lost or stolen paper certificates. TreasuryDirect is the safest way to invest in U.S. government debt instruments.
Types of Treasury Securities
Treasury Bills (T-Bills)
Treasury Bills are short-term securities that mature in one year or less. They are sold at a discount to face value and don't pay periodic interest. Instead, you receive the full face value at maturity, with the difference between purchase price and face value being your interest earnings.
T-Bill Characteristics (January 2026):
• Maturities: 4 weeks, 8 weeks, 13 weeks, 26 weeks, 52 weeks
• Minimum Purchase: $100
• Purchase Increments: $100
• Current 3-Month Rate: 3.65%
• Current 6-Month Rate: 3.58%
• Interest Payment: Paid at maturity (discount pricing)
• Auction Frequency: Weekly for 4, 13, and 26-week bills
Treasury Bill Calculation Formula
T-Bills are sold at a discount. The discount rate determines how much less than face value you pay.
T-Bill Purchase Price Formula:
T-Bill Investment Return Formula:
T-Bill Calculation Example:
Scenario: 26-week (182 days) T-Bill with 3.58% discount rate
Face Value: $10,000
Calculation:
\[ \text{Purchase Price} = 10000 \times \left(1 - \frac{0.0358 \times 182}{360}\right) \]
\[ \text{Purchase Price} = 10000 \times (1 - 0.01809) = \$9,819.10 \]
Interest Earned: $10,000 - $9,819.10 = $180.90
Actual Yield: ($180.90 / $9,819.10) × (365/182) × 100% = 3.69%
Result: You pay $9,819.10 today and receive $10,000 in 6 months
Treasury Notes (T-Notes)
Treasury Notes are intermediate-term securities with maturities of 2, 3, 5, 7, or 10 years. They pay fixed interest (coupon payments) every six months and return the principal at maturity. T-Notes are the most popular marketable Treasury security among individual investors.
T-Note Characteristics (January 2026):
• Maturities: 2, 3, 5, 7, 10 years
• Minimum Purchase: $100
• Purchase Increments: $100
• Current 2-Year Rate: 3.47%
• Current 10-Year Rate: 4.19%
• Interest Payment: Semi-annual coupon payments
• Auction Frequency: Monthly for most maturities
Treasury Note Calculation Formula
T-Note Total Return Formula:
T-Note Calculation Example:
Scenario: $10,000 10-year T-Note with 4.00% coupon rate
Calculation:
Semi-Annual Coupon = ($10,000 × 0.04) / 2 = $200 every 6 months
Number of Payments = 10 years × 2 = 20 payments
Total Interest = $200 × 20 = $4,000
Total Return = $10,000 + $4,000 = $14,000
Result: Over 10 years, you receive $4,000 in interest payments plus $10,000 principal
Treasury Bonds (T-Bonds)
Treasury Bonds are long-term securities with maturities of 20 or 30 years. Like T-Notes, they pay semi-annual interest and are ideal for investors seeking steady, long-term income streams. The 30-year Treasury Bond is often referred to as the "long bond" and serves as a benchmark for long-term interest rates.
T-Bond Characteristics (January 2026):
• Maturities: 20 years, 30 years
• Minimum Purchase: $100
• Purchase Increments: $100
• Current 20-Year Rate: 4.81%
• Current 30-Year Rate: 4.86%
• Interest Payment: Semi-annual coupon payments
• Auction Frequency: Quarterly
Treasury Inflation-Protected Securities (TIPS)
TIPS are marketable securities whose principal is adjusted based on changes in the Consumer Price Index (CPI-U). With inflation, the principal increases; with deflation, it decreases. TIPS pay interest twice a year at a fixed rate, applied to the adjusted principal. At maturity, you receive the adjusted principal or the original principal, whichever is greater.
TIPS Characteristics (January 2026):
• Maturities: 5, 10, 30 years
• Minimum Purchase: $100
• Inflation Protection: Principal adjusts with CPI-U
• Current 10-Year TIPS: ~2.00% real yield
• Interest Payment: Semi-annual on adjusted principal
• Deflation Protection: Never receive less than original principal
TIPS Calculation Formula
TIPS Adjusted Principal Formula:
TIPS Calculation Example:
Scenario: $10,000 TIPS with 2.0% real rate, 2.5% annual inflation over 5 years
Calculation:
Cumulative Inflation (5 years @ 2.5%): ~13.14%
Adjusted Principal = $10,000 × 1.1314 = $11,314
Final Semi-Annual Payment = ($11,314 × 0.02) / 2 = $113.14
Total Interest = Principal adjustments + coupon payments
Result: You receive $11,314 at maturity (inflation-protected) plus $1,000+ in interest payments
TreasuryDirect Account Features
How to Open a TreasuryDirect Account
Steps to Open Your TreasuryDirect Account:
1. Visit TreasuryDirect.gov: Go to the official website and click "Open an Account"
2. Provide Personal Information: Social Security Number, email, bank account information
3. Choose Account Type: Individual, custodial (minor), entity, or estate account
4. Set Security Features: Password, security questions, account number
5. Link Bank Account: For purchasing securities and receiving payments
6. Start Investing: Buy securities at auctions or directly
Processing Time: Accounts are typically approved within 24 hours
Purchase Limits and Restrictions
| Security Type | Minimum Purchase | Annual Maximum | Increments |
|---|---|---|---|
| Treasury Bills | $100 | $10 million (per auction) | $100 |
| Treasury Notes | $100 | $10 million (per auction) | $100 |
| Treasury Bonds | $100 | $10 million (per auction) | $100 |
| TIPS | $100 | $10 million (per auction) | $100 |
| Series EE Bonds | $25 | $10,000 | $0.01 |
| Series I Bonds | $25 | $10,000 electronic + $5,000 paper | $0.01 |
Treasury Auction Process
Most marketable Treasury securities (T-Bills, T-Notes, T-Bonds, TIPS) are sold through auctions. Understanding the auction process helps you make informed investment decisions.
Competitive vs. Noncompetitive Bids
Noncompetitive Bid
Best for individual investors
• You agree to accept the yield determined at auction
• Your bid is always accepted
• Maximum bid: $10 million per auction
• You specify the amount, Treasury sets the yield
• Recommended for most TreasuryDirect users
Competitive Bid
For sophisticated investors
• You specify the yield you're willing to accept
• Your bid may not be accepted if yield too high
• Requires understanding of market conditions
• You might receive partial fills or nothing
• More complex than noncompetitive
Auction Schedule (2026)
Regular Auction Frequencies:
• 4-Week T-Bills: Every week (Tuesday)
• 13-Week & 26-Week T-Bills: Every week (Monday)
• 52-Week T-Bills: Every 4 weeks (Tuesday)
• 2-Year, 3-Year, 5-Year, 7-Year Notes: Monthly
• 10-Year Notes: Monthly (reopenings quarterly)
• 30-Year Bonds: Quarterly (February, May, August, November)
• TIPS: Quarterly for 5-year and 10-year; semi-annually for 30-year
Check TreasuryDirect.gov for exact auction dates and announcements
Comparing Treasury Securities
| Feature | T-Bills | T-Notes | T-Bonds | TIPS |
|---|---|---|---|---|
| Maturity | ≤ 1 year | 2-10 years | 20-30 years | 5, 10, 30 years |
| Interest Payments | At maturity (discount) | Semi-annual | Semi-annual | Semi-annual |
| Current Rates (Jan 2026) | 3.58-3.65% | 3.47-4.19% | 4.81-4.86% | ~2.0% real |
| Inflation Protection | No | No | No | Yes |
| Minimum Investment | $100 | $100 | $100 | $100 |
| Best For | Short-term cash | Medium-term goals | Long-term income | Inflation hedge |
| Risk Level | Lowest | Low | Low-Moderate | Low |
| Tax Treatment | Federal only | Federal only | Federal only | Federal only |
Tax Treatment of Treasury Securities
Understanding the tax implications of Treasury securities helps you maximize after-tax returns and make informed investment decisions.
Federal Income Tax
Federal Tax Rules for Treasury Securities:
• All interest earned on Treasury securities is subject to federal income tax
• Interest is taxed as ordinary income, not capital gains
• You receive Form 1099-INT showing interest income annually
• For T-Bills, interest is reported in the year the bill matures
• For TIPS, inflation adjustments are taxable even though not received until maturity
• Report interest on Form 1040, Schedule B if over $1,500
State and Local Tax Exemption
One of the most valuable tax benefits of Treasury securities is their exemption from state and local income taxes. This makes Treasuries particularly attractive for residents of high-tax states like California, New York, and New Jersey.
Tax-Equivalent Yield Formula:
Compare this to taxable bonds to determine better value
Tax-Equivalent Yield Example:
Scenario: 4.19% 10-year T-Note for California resident (13.3% state tax)
Calculation:
\[ \text{TEY} = \frac{0.0419}{1 - 0.133} = \frac{0.0419}{0.867} = 0.0483 = 4.83\% \]
Result: The 4.19% Treasury yield is equivalent to a 4.83% taxable yield for California residents. A corporate bond would need to yield 4.83% to match the after-tax return.
Treasury Securities vs. Savings Bonds
Marketable Securities (Bills, Notes, Bonds, TIPS)
• Can be bought and sold on secondary market before maturity
• Market value fluctuates with interest rates
• Higher maximum purchase amounts ($10M per auction)
• Professional trading and portfolio management possible
• Suitable for active investors and institutions
Non-Marketable Securities (Series EE & I)
• Cannot be sold; must redeem with Treasury
• Value never decreases (no market risk)
• Lower purchase limits ($10,000-$15,000 annual)
• Simpler for buy-and-hold investors
• Ideal for personal savings goals
Investment Strategies with TreasuryDirect
Laddering Strategy
Bond laddering involves purchasing securities with staggered maturities to balance yield and liquidity. This strategy reduces interest rate risk and provides regular access to funds.
Example T-Bill Ladder with $10,000:
• $2,500 in 4-week T-Bill (matures in 1 month)
• $2,500 in 13-week T-Bill (matures in 3 months)
• $2,500 in 26-week T-Bill (matures in 6 months)
• $2,500 in 52-week T-Bill (matures in 12 months)
Benefits: Cash available every few months, average market rates, reduced reinvestment risk
TIPS for Inflation Protection
Allocate 10-30% of your bond portfolio to TIPS to protect against inflation. TIPS provide guaranteed real returns while nominal Treasuries offer higher stated yields in low-inflation environments.
Emergency Fund with T-Bills
Use 4-week or 13-week T-Bills as an alternative to high-yield savings accounts. T-Bills offer competitive rates with government backing and state tax exemption, though less liquid than bank accounts.
Official TreasuryDirect Resources (2026)
Always use official U.S. Treasury resources for purchasing and managing securities.
