Gilt calculator

Frequently asked questions
How do I use the gilt calculator
This tool gives you an idea of the return you could earn over the lifetime of a gilt, assuming you hold it to maturity.
Here’s how to use the Gilts return calculator:
- Select the gilt you’re considering investing in from the dropdown list.
- Enter the current market price. You check this in your Freetrade app or by clicking 'Check live price'.
- Enter the amount of cash you’re thinking of investing in the gilt.
The calculator will show you the total estimated return you could get if you bought the gilt at the inputted price and held it to maturity.
It’ll also show you:
- How much of this estimated return will come from coupons
- How much of this estimated return will come from the gain or loss realised at maturity
- The running yield
- The yield-to-maturity
What are gilts?
Gilts are not subject to Stamp Duty Reserve Tax (SDRT) or capital gains tax.
The coupons, however, are subject to income tax. Unless, of course, you hold them in an ISA or SIPP. Then you won’t pay any tax on the dividends.
Are gilts tax-free?
Gilts are not subject to Stamp Duty Reserve Tax (SDRT) or capital gains tax.
The coupons, however, are subject to income tax. Unless, of course, you hold them in an ISA or SIPP. Then you won’t pay any tax on the dividends.
How to buy gilts?
As a Freetrade Standard or Plus customer, you can buy gilts in your ISA, pension, or general investment account.
What's the coupon rate?
Also known as the coupon, this is the fixed annual interest rate paid to gilt holders, expressed as a percentage of the gilt’s face value. The rate is quoted annually, but paid semi-annually.
What is running yield?
The annual dividend divided by the current market price of the gilt.
What is yield-to-maturity?
The annual return you'll receive if you buy a gilt at the current market price and hold it o maturity. As gilt prices rise, yields fall, and vice versa.
With gilts, market prices fluctuate. Your return will vary depending on the timing of your trades and market interest rates.
ISA and SIPP rules apply. Tax treatment depends on your personal circumstances and current rules may change.
A SIPP is a pension designed for people who want to make their own investment decisions. You can normally only access your money from age 55 (57 from 2028).
Freetrade currently only supports Uncrystallised Fund Pension Lump Sums (UFPLS) for SIPP withdrawals.
Seek professional advice if you need help with your pension.

