Return on Yield Calculator

Formula

The formula to calculate the Return on Yield (ROY) is:

\[ ROY = \frac{NRR}{PA} \times 100 \]

Where:

$ROY$ is the return on yield (%)
$NRR$ is the net realized return (\$)
$PA$ is the principal amount (\$)

What is Return on Yield?

Return on Yield (ROY) is a measure of the profitability of an investment, expressed as a percentage. It is calculated by dividing the net realized return by the principal amount and then multiplying by 100.

Example Calculation

Let's assume the following values:

Net Realized Return (NRR) = \$500
Principal Amount (PA) = \$2000

Using the formula:

\[ ROY = \frac{500}{2000} \times 100 = 25\% \]

The Return on Yield (ROY) is 25%.