Most bonds are worth their face value and the sum of dividends until maturity. Callable bonds are worth less because the issuer may redeem them before the maturity date. If interest rates drops before the bond matures, the issuer may exercise an option to cancel the bond and refinance it at a lower rate. Bond holders therefore face a reinvestment risk, and callable bonds therefore usually must offer higher coupons to balance the liability.

Add 1 to the bond's coupon rate. For example, if the bond offers a coupon of 0.08, and 1 to 0.08 to get 1.08.

Raise this value to the power of the number of years before the issuer calls the bond. For example, if the issuer calls the bond after just two years, raise 1.08 to the power of 2 to get 1.1664.

Multiply this factor by the bond's face value. For example, if the bond has a face value of $10,000, multiply 1.1664 by $10,000 to get $11,664.

Subtract the bond's call price, which usually matches the bond's par value. If the call price is exactly $10,000, subtract $10,000 from $11,664 to get $1,664. This is the callable bond's value.

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