Ee Bond Calculator

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Series EE Savings Bond Calculator

Paper (Purchased at 1/2 Face Value) Electronic (Purchased at Face Value)
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Calculation Results

Purchase Price:

Estimated Interest Earned:

Total Current Value:

Months Held:

function calculateEEBond() { var series = document.getElementById("bondSeries").value; var faceValue = parseFloat(document.getElementById("faceValue").value); var month = parseInt(document.getElementById("issueMonth").value); var year = parseInt(document.getElementById("issueYear").value); if (isNaN(faceValue) || isNaN(year) || faceValue <= 0) { alert("Please enter valid numeric values."); return; } var purchasePrice = (series === "paper") ? (faceValue / 2) : faceValue; var issueDate = new Date(year, month, 1); var today = new Date(); var monthsHeld = (today.getFullYear() – issueDate.getFullYear()) * 12 + (today.getMonth() – issueDate.getMonth()); if (monthsHeld = 2005 && month >= 4) { // Fixed Rate Era (Rates typically range 0.1% to 3.5%) // Using an average historical estimation for calculation rate = 0.015; // 1.5% avg if (year >= 2023) rate = 0.025; if (year >= 2015 && year = 240 && currentValue = 1997) { // Variable Rate (90% of 5-year Treasury yields) rate = 0.035; currentValue = purchasePrice * Math.pow((1 + (rate / 2)), (monthsHeld / 6)); if (monthsHeld >= 240 && currentValue 360) { currentValue = purchasePrice * Math.pow((1 + (rate / 2)), (360 / 6)); } } var interest = currentValue – purchasePrice; if (interest < 0) interest = 0; document.getElementById("resPurchasePrice").innerText = "$" + purchasePrice.toFixed(2); document.getElementById("resInterest").innerText = "$" + interest.toFixed(2); document.getElementById("resTotalValue").innerText = "$" + currentValue.toFixed(2); document.getElementById("resMonths").innerText = monthsHeld; var note = ""; if (monthsHeld = 360) { note = "This bond has reached final maturity (30 years) and is no longer earning interest."; } else if (year >= 2003 && monthsHeld < 240) { var yearsLeft = Math.ceil((240 – monthsHeld) / 12); note = "This bond is guaranteed to double in value in approximately " + yearsLeft + " more years."; } document.getElementById("doublingNote").innerText = note; document.getElementById("bondResult").style.display = "block"; }

How Does an EE Bond Calculator Work?

A Series EE Savings Bond is a low-risk savings product issued by the United States Treasury. Unlike traditional bonds where you receive periodic interest payments, EE bonds accrue interest monthly and compound semiannually. The value is paid out when you cash the bond.

The Two Types of Series EE Bonds

  • Paper Bonds: Issued before 2012, these were purchased at 50% of their face value. For example, you paid $50 for a $100 bond. The interest earns until the bond reaches face value (and beyond).
  • Electronic Bonds: Purchased through TreasuryDirect, these are bought at full face value. A $100 bond costs $100.

Key Rules and the "20-Year Guarantee"

One of the most unique features of Series EE bonds issued after May 1, 2005, is the Treasury's guarantee. The Treasury guarantees that the bond will double in value 20 years after its issue date. If the fixed interest rate isn't high enough to double the value, the Treasury makes a one-time "adjustment" at the 20-year mark to bring the value to twice the purchase price.

Interest Calculation Factors

To accurately calculate the value of an EE bond, you must consider three main variables:

  1. Issue Date: Bonds issued in different eras use different interest structures (Fixed vs. Variable).
  2. Fixed Rate: For bonds issued today, the interest rate is set at the time of purchase and stays the same for 20 years.
  3. Holding Period: Bonds must be held for at least 12 months. If cashed before 5 years, you forfeit the previous three months of interest as a penalty.

Example Calculation

Suppose you have a $100 Paper Series EE Bond issued in May 2003:

  • Purchase Price: $50.00 (Paper bonds are half face value).
  • Original Interest: These bonds used variable rates based on Treasury yields.
  • The Double: In May 2023 (20 years later), the Treasury adjusted its value to $100.00.
  • Current Status: It continues to earn interest on that $100 until it hits 30 years (Final Maturity).

Taxation and Maturity

Interest earned on EE bonds is subject to Federal income tax but exempt from State and Local taxes. You can defer reporting the interest until you cash the bond or it reaches final maturity at 30 years. If the money is used for qualified higher education expenses, the interest may be completely tax-free under certain conditions.

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