TIPS stand for Treasury Inflation Protection Securities and are issued and guaranteed by the US government. They are issued with a fixed coupon or interest rate but where the principal is indexed to inflation. In this calculator you can see how the returns and principal changes with inflation assumptions.
TIPS (Treasury Inflation-Protected Securities) are bonds issued and guaranteed by the US government with a fixed coupon rate, but where the principal itself is adjusted based on inflation.
It shows how a TIPS bond's returns and principal change under different inflation assumptions, letting you see the impact of higher or lower inflation on your investment.
A regular treasury bond pays a fixed coupon on a fixed principal, while a TIPS bond's principal adjusts with inflation — so your coupon payments and final principal both rise (or fall) as inflation changes, protecting purchasing power.
TIPS are designed to protect against inflation risk — if you're concerned that rising prices will erode the real value of a fixed-rate bond's payments, TIPS adjust their principal to help preserve purchasing power.
The Bond Calculator handles pricing and yield for regular bonds, and the Fixed Income Dashboard provides benchmark rates for comparison.
