Finance

Credit Spread Calculator

Calculate the yield spread between a corporate bond and a risk-free benchmark (Treasury).

Corporate Bond Yield (%)

Treasury (Risk-Free) Yield (%)

Face Value ($)

Years to Maturity

Formula:
Credit Spread = Corporate Yield − Risk-Free Yield
Spread in Basis Points = Spread × 100
Additional Income = Face Value × Spread

Understanding Credit Spreads

The credit spread is the difference in yield between a corporate bond and a government bond of similar maturity. It represents the additional compensation investors demand for taking on the credit risk of the corporate issuer.

Typical Spreads by Rating

Credit Rating	Typical Spread (bps)
AAA	30-60
AA	50-100
A	80-150
BBB	150-300
BB (High Yield)	300-500
B	400-700