Accrued Interest

Bonds & Fixed Income
Updated Apr 2026 Has calculator

The portion of the next coupon payment that has accumulated since the last coupon date, paid by the buyer to the seller at settlement.

What is Accrued Interest?

When a bond is traded between coupon payment dates, the buyer must compensate the seller for the interest that has accrued since the last coupon payment. This amount is called accrued interest and is added to the quoted clean price to produce the dirty (or full) price — the actual cash amount paid at settlement. Accrued interest is computed by prorating the periodic coupon based on the number of days elapsed. Different bond markets use different day-count conventions: US Treasuries use actual/actual; US corporates and agencies use 30/360; Eurobonds use actual/360.

Formula

Accrued Interest = Coupon × (Days Since Last Coupon / Days in Period)

Worked Example

Worked example — US Treasury 4.625% Note due November 2026

Settlement 60 days after last coupon (May 15, 2024 → July 14, 2024)

Step 1  Semi-annual coupon: $23.125 (4.625% × $1,000 / 2)
Step 2  Days since last coupon (May 15): 60 days
Step 3  Days in coupon period (May 15 → Nov 15): 184 days (actual/actual)
Step 4  Accrued Interest = $23.125 × (60 / 184)
Step 5  Accrued Interest = $7.54 — buyer pays clean price + $7.54 at settlement

Source: US Department of the Treasury — Treasury Securities (2024-07-14)

Calculate Accrued Interest

Dollar value of one periodic coupon payment (e.g. semi-annual)

Number of days elapsed since the last coupon payment date

Total days in this coupon period (e.g. 180 or 182 for semi-annual)

Accrued Interest

Not investment advice.

How to Interpret Accrued Interest

< 5
< $5: Low accrual — coupon date is near or low-coupon bond
5 – 15
$5–$15: Typical accrual — mid-period settlement on standard bond
15 – 30
$15–$30: Higher accrual — near end of coupon period
> 30
> $30: High coupon — large face value or high-coupon bond