Treasury Bills are short-term government securities issued by the Government of Uganda through the Bank of Uganda.
But if you invest UGX 1,000,000 in a Treasury Bill, how much do you actually earn?
The answer depends on the face value, purchase price, maturity period and the yield at which the Treasury Bill is priced.
Once you understand how Treasury Bills work, calculating the return becomes relatively straightforward.
How Treasury Bill Returns Are Calculated
Treasury Bills work on a discount basis.
Unlike Treasury Bonds, which generally pay coupons every six months, Treasury Bills do not make regular interest payments.
Instead:
- You buy the Treasury Bill for less than its face value.
- You hold it until maturity.
- At maturity, you receive the full face value.
- The difference between what you paid and what you receive is your return before applicable taxes.
The basic calculation is:
Return = Face Value − Purchase Price
For example, if you pay UGX 900,000 for a Treasury Bill with a face value of UGX 1,000,000:
Return = UGX 1,000,000 − UGX 900,000
Return = UGX 100,000 before applicable taxes
The important question, therefore, is how much you actually pay for the Treasury Bill.
Step 1: Identify the Face Value
The face value is the amount you will receive when the Treasury Bill matures.
Suppose you want a Treasury Bill with a face value of:
UGX 1,000,000
You do not necessarily pay UGX 1,000,000 upfront.
Because Treasury Bills are sold at a discount, your purchase price will be lower than the face value.
The difference becomes your return.
Step 2: Find the Treasury Bill Price
Bank of Uganda publishes the results of Treasury Bill auctions, including the cut-off price and resulting yields for the 91-Day, 182-Day and 364-Day Treasury Bills.
The cut-off price can be used to understand how much an investor pays relative to the face value.
For example, at the Bank of Uganda Treasury Bills auction held on 2 September 2026, the 364-Day Treasury Bill had a cut-off price of 90.115 per UGX 100 of face value.
This gives us a practical example of how the calculation works.
Step 3: Calculate the Purchase Price
Suppose you want a Treasury Bill with a face value of:
UGX 1,000,000
Using a cut-off price of 90.115, the calculation is:
Purchase Price = Face Value × Cut-Off Price ÷ 100
Therefore:
Purchase Price = UGX 1,000,000 × 90.115 ÷ 100
Purchase Price = UGX 901,150
You would therefore pay approximately UGX 901,150 for a Treasury Bill that pays UGX 1,000,000 at maturity.
Step 4: Calculate Your Treasury Bill Return
Now that you know the purchase price, calculating the return is simple.
Face Value: UGX 1,000,000
Purchase Price: UGX 901,150
The calculation is:
Return = UGX 1,000,000 − UGX 901,150
Return = UGX 98,850 before applicable taxes
So, in this example, an investor paying UGX 901,150 would receive UGX 1,000,000 at maturity, producing a gross return of UGX 98,850.
For the latest 91-Day, 182-Day and 364-Day yields, see our current Treasury Bill rates in Uganda.
Why the Published Treasury Bill Yield Is Different From Your Actual Profit
This is where Treasury Bill returns can become confusing.
At the same 2 September 2026 auction, the 364-Day Treasury Bill recorded a money market yield of 10.999%.
That does not mean an investor simply takes 10.999% and multiplies it by the face value.
The published yield is an annualised measure of return that allows investors to compare Treasury Bills and other short-term securities.
Your actual shilling return depends on what you paid for the Treasury Bill and what you receive at maturity.
In our example:
Amount paid: UGX 901,150
Amount received at maturity: UGX 1,000,000
Gross return: UGX 98,850
This distinction becomes even more important when looking at shorter 91-Day and 182-Day Treasury Bills.
Calculating Returns on a 91-Day or 182-Day Treasury Bill
The same basic principle applies regardless of the maturity.
For a 91-Day Treasury Bill:
Return = Face Value − Purchase Price
For a 182-Day Treasury Bill:
Return = Face Value − Purchase Price
And for a 364-Day Treasury Bill:
Return = Face Value − Purchase Price
What changes is the price you pay and how long you wait before receiving the face value.
A quoted annualised yield on a 91-Day Treasury Bill does not mean you earn that entire percentage in 91 days.
Similarly, an annualised yield on a 182-Day Treasury Bill should not be interpreted as the percentage earned during those 182 days.
This is why using the actual purchase price gives you a much clearer picture of how many shillings your investment will generate.
Treasury Bill Calculator: What You Need
If you want to calculate your Treasury Bill return, start with four pieces of information.
Face Value
This is the amount you receive when the Treasury Bill matures.
Purchase Price
This is the amount you actually pay for the Treasury Bill.
Days to Maturity
Uganda Treasury Bills are commonly issued with maturities of 91 days, 182 days and 364 days.
Applicable Tax
Any applicable tax on the return will affect the amount you ultimately keep.
Once you know the face value and purchase price, the basic calculation remains:
Return = Face Value − Purchase Price
For example:
Face Value: UGX 5,000,000
Purchase Price: UGX 4,600,000
Gross Return: UGX 400,000
You can then account for any applicable taxes or charges to determine your net return.
What About Withholding Tax on Treasury Bills?
Taxes affect the amount an investor ultimately earns from a Treasury Bill.
The gross return calculated from the difference between the face value and purchase price should therefore not automatically be treated as the amount you will keep after tax.
When comparing an investment, distinguish between:
Gross return — the return before applicable taxes.
Net return — what remains after applicable taxes and charges.
This gives you a more realistic picture of what the investment produces.
Purchase Price vs Yield: Which Should You Use?
It depends on what you are trying to calculate.
If you want to know how many shillings you will earn, the face value and purchase price give you the clearest calculation:
Face Value − Purchase Price = Gross Return
If you are comparing Treasury Bills with different maturities or comparing rates across different auctions, the published yields are more useful.
This is why Bank of Uganda auction results publish both pricing and yield information.
The price helps you understand what is being paid for the security, while the yield helps you compare its return with other investment opportunities.
How Much Would UGX 10 Million Earn in Treasury Bills?
The amount earned depends on the Treasury Bill price available when you invest.
Using the same 90.115 cut-off price from the 364-Day Treasury Bill auction of 2 September 2026 as an example:
Face Value: UGX 10,000,000
Purchase Price = UGX 10,000,000 × 90.115 ÷ 100
Purchase Price = UGX 9,011,500
The gross return would therefore be:
UGX 10,000,000 − UGX 9,011,500
Gross Return = UGX 988,500
This example illustrates why the amount you want to receive at maturity is not necessarily the same amount you need to pay upfront.
The actual figures will change as Treasury Bill prices and yields change from one auction to another.
Looking for Other Investment Options?
Treasury Bills are not currently available for investment through Level Africa, but there are other investment options you can explore depending on what you want your money to achieve.
If you were considering Treasury Bills because you want exposure to government securities, you can explore Treasury Bonds available through Level Africa.
If your priority is liquidity and access to your money, you can compare Unit Trusts, including Money Market Funds available on the platform.
Level Africa also provides Fixed Income opportunities for investors looking for structured income investments.
You can compare these investments based on factors such as their potential return, minimum investment, investment period, liquidity and risk before deciding what fits your goal.
Final Thoughts
Calculating a Treasury Bill return becomes much easier once you understand that Treasury Bills are bought at a discount and redeemed at face value.
Start with two questions:
How much will you receive at maturity?
How much are you paying today?
The difference between those two amounts is your gross return before applicable taxes.
If you are calculating a return based on current market conditions, use the latest auction information rather than historical rates. You can find the latest figures on our Treasury Bill rates in Uganda page.
Frequently Asked Questions
How do you calculate Treasury Bill returns in Uganda?
Start with the Treasury Bill’s face value and subtract the amount you paid for it.
Return = Face Value − Purchase Price
For example, if you pay UGX 900,000 for a Treasury Bill that pays UGX 1,000,000 at maturity, your gross return is UGX 100,000 before applicable taxes.
How much do I need to invest in Treasury Bills in Uganda?
The minimum amount depends on the applicable Bank of Uganda auction terms. For non-competitive bids in recent Treasury Bill auctions, the minimum has been UGX 100,000.
Do Treasury Bills pay monthly interest?
No. Treasury Bills do not normally pay monthly interest.
They are generally bought at a discount and redeemed at their full face value when they mature.
What is the face value of a Treasury Bill?
The face value is the amount the investor receives when the Treasury Bill matures. It is different from the purchase price, which is the amount paid to acquire the Treasury Bill.
Is the Treasury Bill yield the same as my actual return?
Not exactly.
Treasury Bill yields are quoted on an annualised basis to make securities easier to compare. Your actual shilling return depends on your purchase price, face value and investment period.
Do 364-Day Treasury Bills always have the highest return?
No.
Treasury Bill yields are determined through Bank of Uganda auctions and can change. A 364-Day Treasury Bill may offer a higher yield at one auction, but investors should check the latest rates rather than assume it will always have the highest return.