Enter the net realized return ($) and the principal amount ($) into the Return on Yield Calculator. The calculator will evaluate and display the Return on Yield. 

Return on Yield Formula

The following formula is used to calculate the Return on Yield. 

ROY = NRR / PA *100
  • Where ROY is the Return on Yield (%)
  • NRR is the net realized return ($) 
  • PA is the principal amount ($) 

To calculate the return on yield, divide the net realized return by the principal amount, then multiply by 100.

How to Calculate Return on Yield?

The following example problems outline how to calculate Return on Yield.

Example Problem #1:

  1. First, determine the net realized return ($).
    • The net realized return ($) is given as: 567.
  2. Next, determine the principal amount ($).
    • The principal amount ($) is provided as: 4000.
  3. Finally, calculate the Return on Yield using the equation above: 

ROY = NRR / PA *100

The values given above are inserted into the equation below and the solution is calculated:

ROY = 567 / 4000 *100 = 14.175 (%)

FAQ

What is net realized return?
Net realized return refers to the profit or loss that an investor makes on an investment, after accounting for all expenses and costs associated with the investment. It represents the actual gain or loss realized from the investment when it is sold.

Why is it important to calculate Return on Yield?
Calculating Return on Yield is important because it helps investors understand the efficiency and profitability of their investments relative to the initial amount invested. It provides a percentage-based outcome that makes it easier to compare the performance of different investments.

Can Return on Yield be negative?
Yes, Return on Yield can be negative if the net realized return is a loss, meaning the investment’s selling price was less than its purchase price plus any associated costs. A negative Return on Yield indicates that the investor has lost a portion of the principal amount invested.