Breakeven inflation calculator

Nominal vs. linker, and whose view wins.

Interactive: breakeven inflationMedium

Nominal yield in, real yield in, the market's inflation expectation out — then compare it with your own.

Nominal yield % Real (linker) yield % Your inflation view %

Breakeven inflation: —
Rule of thumb (n − r): —
Your view vs. market: —
Which bond wins: —

Exactly: (1+n)/(1+r) − 1. Breakevens also carry an inflation risk premium and a liquidity discount, so they are a forecast plus noise, not a clean one — but they are the only continuously traded inflation expectation that exists. See inflation-linked bonds.

The idea behind it

This calculator belongs to The Yield Curve, where the mechanism it computes is explained step by step, with the formula, what each input means and where the simple model stops being right. Everything is computed in your browser; nothing you type is sent anywhere.

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Not advice. This explains how something works; it is not a recommendation, and nothing here is tailored to you. You can lose everything you put in — with leveraged instruments, considerably more. StrikeAndYield is not a regulated firm and provides no financial services.

The same in full — six points, and why each one matters

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Nothing here is tailored to you. This is written for a general audience. It does not consider your objectives, financial situation, knowledge, time horizon or tolerance for loss.
The examples are simplified. Worked examples use round numbers and leave out costs, spreads, taxes, collateral, settlement and market conventions that materially change real outcomes.
The models are teaching models. Formulas shown are standard textbook formulations. Institutions add calibration, live market data and credit, funding and capital adjustments — nothing here will reproduce a dealer’s quote or produce a valuation you can rely on.
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