Convertible Bond Calculator
Enter the face value, coupon, conversion ratio and share price.
Conversion value
β
Enter values above
Conversion premium
Downside floor
β
Break-even share price
β
Value after a 20% share move
β
Upside participation
β
Worked example
With the default inputs shown below, this calculator returns the following results:
| Input | Value |
|---|---|
| Face value ($) | 1000 |
| Conversion ratio (shares per bond) | 20 |
| Current share price ($) | 45 |
| Straight bond value ($) | 900 |
| Bond price ($) | 1000 |
| Share price move to test (%) | 20 |
| Result | Value |
|---|---|
| Conversion value | $900.00 |
| Conversion premium | 11.11% |
| Downside floor | $900 |
| Break-even share price | $50.00 |
| Value after a 20% share move | $1,080.00 |
| Upside participation | 100.00% |
Values shown are produced by this page in your browser; change any input to update them.
How to use the Convertible Bond Calculator
- Face value ($) β default 1000
- Conversion ratio (shares per bond) β default 20
- Current share price ($) β default 45
- Straight bond value ($) β default 900
- Bond price ($) β default 1000
- Share price move to test (%) β default 20
- Press Calculate to update the results instantly.
Frequently asked questions
The value of the shares you would receive if you converted now: the conversion ratio multiplied by the share price. If that exceeds the bond price, conversion is immediately profitable.
Because the straight bond value acts as a floor. If the share price collapses, the bond still has value as debt, which limits the downside while retaining much of the upside.
Typically 20β35% for a new issue. A lower premium means more equity sensitivity but less downside protection; a higher premium behaves more like a straight bond.