MDURATION Function in Excel: Modified Duration

MDURATION Function in Excel: Modified Duration featured illustration

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⏱ 2 min readUpdated 28 September 2026

FinancialLevel: ExpertAvailable in: Excel 2007+

In this article
  1. Syntax
  2. Examples
  3. Example 1
  4. MDURATION in practice
  5. Where you will use it
  6. Worked example
  7. Mistakes people make
  8. Related functions
  9. Continue learning

MDURATION estimates the percentage price change for a 1% change in yield — the number fund managers quote.

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Syntax

=MDURATION(settlement, maturity, coupon, yld, frequency, [basis])
Argument What it means
yld Current yield.

Examples

Example 1

=MDURATION(DATE(2021,4,1), DATE(2031,4,1), 7%, 7.5%, 2)

A little below DURATION — roughly the % price drop if yields rise 1%.

MDURATION in practice

Where you will use it

  • Price change for a 1% rate move
  • Bond risk
  • Portfolio sensitivity

Worked example

CouponYieldMaturityFormulaResult
0.080.07531-Mar-2031=ROUND(MDURATION(DATE(2026,10,4),C2,A2,B2,2,0),2)3.72
0.070.0731-Mar-2036=ROUND(MDURATION(DATE(2026,10,4),C3,A3,B3,2,0),2)6.84
0.090.08531-Mar-2028=ROUND(MDURATION(DATE(2026,10,4),C4,A4,B4,2,0),2)1.37

Results calculated in Excel.

Mistakes people make

MistakeWhat to do instead
Reading it≈ % price change for a 1% yield change
Duration vs modifiedMDURATION = DURATION / (1 + yield/frequency)

DURATION · PRICE

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