EE Savings Bond Calculator

How EE Bond Value Is Calculated: a Worked Example

Under 31 CFR 351.35, a Series EE bond issued May 2005 or later earns a fixed rate set when you buy it. Interest is added monthly and compounds every six months, so after k months the value is the price × (1 + rate ÷ 2)^{k ÷ 6}. TreasuryDirect’s rate for bonds issued May 1 through October 31, 2026 is 2.40%; a new rate is announced each May 1 and November 1.

1. $1,000 at 2.40%: each half-year multiplies the value by 1.012.
2. After 20 years (40 half-years): $1,000 × 1.012⁴⁰ = $1,611.46.
3. At 20 years Treasury guarantees double the purchase price for electronic bonds, so it adds $388.54 and the bond is worth $2,000.00.
4. That doubling works out to 2^1/20 − 1 = @DBL@ a year, but only if you hold the full 20 years.

Value by Month Held

The jump at 240 months is the doubling guarantee: one month earlier the bond is worth far less, so cashing in just before 20 years gives up most of the benefit. After 20 years this calculator assumes the bond keeps earning its fixed rate on the doubled value, which is what the regulation provides unless Treasury announces a different rate for the extended period.

Rules: Lock-Up, Penalty, Maturity and Limits

• 12-month lock: you cannot cash an EE bond in its first year.
• 3-month penalty before 5 years: you get interest only up to 3 months before the cash-in date (TreasuryDirect’s example: cash in at 18 months, receive 15 months of interest), and never less than the price.
• 20-year original maturity: electronic bonds are worth at least double the purchase price; paper bonds at least their face value.
• 30-year final maturity: interest stops. Electronic bonds are paid automatically; paper bonds must be cashed.
• Purchase limit: $10,000 of electronic EE bonds per person per calendar year, bought only through TreasuryDirect.

Taxes and the Education Exclusion

EE bond interest is subject to federal income tax but exempt from state and local income tax. You can report it when you cash the bond or at final maturity (most people defer). If you use the proceeds for qualified higher education expenses, the interest can be excluded from income under IRC 135; for 2026 the exclusion phases out between $152,650 and $182,650 of modified AGI on a joint return and between $101,800 and $116,800 for other filers (Rev. Proc. 2025-32), and the bond must be in the name of a buyer who was at least 24 when it was issued.

EE Bonds vs I Bonds and T-Bills

An I bond issued May through October 2026 pays 4.26% (0.90% fixed plus an inflation rate reset every six months), so it beats an EE bond in most years, but it has no 20-year doubling. A 52-week Treasury bill yielded 4.49% on October 21, 2026. The EE bond is the only one of the three with a guaranteed return over 20 years (3.53% a year), which is its use: money you are sure you will not need for two decades.

Common Mistakes

• Cashing in at 19 years. The doubling only applies at 20 years.
• Holding past 30 years. The bond stops earning, and the deferred interest becomes taxable that year whether you cash it or not.
• Applying today’s rules to old paper bonds. Bonds issued before May 2005 earn market-based or other rates; use TreasuryDirect’s Savings Bond Calculator for those.
• Counting the guarantee on a paper bond as double the price. Paper EE bonds were sold at half their face value, and the guarantee is to reach face value.

What the Calculator Does Not Cover

It values electronic EE bonds issued May 2005 or later at a single fixed rate. TreasuryDirect computes values on $25 units with its own rounding, so official values can differ by a few cents. Older EE bonds, paper bonds with face-value guarantees, I bonds, the education exclusion phase-out and gift or estate rules are not modeled; the IRS Form 8815 instructions explain the exclusion. For a stack of inherited paper bonds, TreasuryDirect’s Savings Bond Calculator lists each bond’s value and maturity.

Frequently Asked Questions

How to Use This Calculator

1. Enter the purchase price — what you paid (electronic bonds are bought at face value, from $25).
2. Enter the fixed rate — the rate when the bond was issued: 2.40% for May 1 to October 31, 2026 (your TreasuryDirect account shows it).
3. Enter the months held — how long you will have owned it when you cash in; 240 months is the 20-year doubling date, 360 the final maturity.
4. Add your federal tax rate — for the tax due when you cash in.
5. Read the results — months of interest credited after any penalty, value, interest, effective yield, the doubling adjustment and the tax.