Issuing debt in the form of bonds is one way the U.S. government raises money to fund its operations. U.S. debt securities are guaranteed by the government and offer the benefit of being “risk-free” if held to maturity. They’re also state and local tax-free. (You still owe federal income taxes on interest earned.)[1]

This page contains calculators to help reveal the benefits, drawbacks and differences of investing in U.S. Treasury bills, bonds or notes.

Treasury note and bond calculator

Treasury bonds are a long-term debt security, maturing in 20 or 30 years. Treasury notes mature in two, three, five, seven or 10 years, and the 10-year Treasury note is one “risk-free” benchmark against which other investments are compared.

Treasury bills calculator

Treasury bills (T-bills) are the shortest-term U.S. debt security. The three-month bill is often used as the short-term benchmark for what is considered “risk-free.”

T-bills, which mature in less than one year, differ from other Treasury bills in terms of their interest rate structure. You buy T-bills at a discount, and upon maturity, you sell them and are repaid the face value of the bond. The “interest earned” is the difference between the discount and face value of the Treasury bill.