Convertible Bond Calculator

Calculate conversion ratio, premium, and floor value for convertible bonds

📄 Face Value

💹 Conversion Price

📈 Stock Price

📊 Bond Price

🔻 Floor Price

Result

Conversion Shares	20 (20.00)
Conversion Value	$120.00
Conversion Premium	-8.33%
Floor Premium	15.79%

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What is this tool?

Convertible bond calculator computes conversion value, conversion premium ratio, and the number of shares you'd receive upon converting a convertible bond into stock. Essential for evaluating whether conversion is financially advantageous versus holding the bond.

How to use

1
Enter bond details
Input face value, conversion price, and current bond price.
2
Enter stock price
Input the current stock price.
3
View conversion metrics
See conversion value, premium ratios, and share count.

Frequently Asked Questions

When should I convert?

When the stock price significantly exceeds the conversion price and the premium ratio is near zero or negative.

What is conversion premium ratio?

It measures how much more the bond trades for versus its conversion value. A high premium means the bond is expensive relative to the underlying stock.

Can I lose money converting?

Yes, if the stock price drops after conversion. The bond's floor value protection is lost upon conversion.

What is a convertible bond?

A convertible bond is a corporate bond that pays a fixed coupon like a normal bond but can also be converted into a set number of the issuer's shares at a predetermined conversion price. It combines bond-like income and downside protection with equity upside: if the stock price rises above the conversion price, converting becomes worthwhile; if it falls, you keep receiving coupon payments and can hold to maturity.

How do interest rate changes affect a convertible bond's price?

Like straight bonds, converts fall when rates rise, but less - the embedded call option retains value in many scenarios. When the stock is far out of the money, the bond's straight value dominates and rate sensitivity is high; deep in the money, it trades almost like stock.