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Investment Yield Calculator
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Date publish: 18.09.2024
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Author: Calcwizard
Understanding Investment Yield
Investment yield is a crucial metric for investors, as it indicates the return on investment (ROI) relative to the amount invested. It helps investors assess the profitability of their investments over a specific period. Yield can be expressed as a percentage and is calculated by dividing the income generated from the investment by the initial amount invested.
How to Calculate Investment Yield
The formula for calculating investment yield is:
Investment Yield (%) = (Income / Investment Amount) x 100
Examples of Investment Yield Calculation
| Investment Amount | Income Earned | Investment Yield (%) |
|---|---|---|
| $5,000 | $300 | 6% |
| $10,000 | $1,200 | 12% |
| $20,000 | $2,500 | 12.5% |
| $15,000 | $1,500 | 10% |
Interesting Facts About Investment Yield
- The average stock market return over the long term is around 7% to 10% annually, including dividends.
- Real estate investments can yield anywhere from 8% to 12% depending on the location and market conditions.
- High-yield savings accounts typically offer yields between 0.5% to 2%, which is significantly lower than other investment options.
Using the Investment Yield Calculator
To use the Investment Yield Calculator, simply input your investment amount and the income generated. The calculator will automatically compute your yield, allowing you to make informed decisions about your investments.
