Effective Annual Yield Calculator

Calculate Effective Annual Yield



Formula

To calculate the Effective Annual Yield (i):

$$i = \left(1 + \frac{r}{m}\right)^m - 1$$

Where:

What is Effective Annual Yield?

An effective annual yield is a measure of the true return on an investment over a time period.

Example Calculation 1

Let's assume the following values:

Using the formula:

$$i = \left(1 + \frac{0.05}{4}\right)^4 - 1 ≈ 0.05095$$

The Effective Annual Yield is approximately 0.05095 or 5.095%.

Example Calculation 2

Let's assume the following values:

Using the formula:

$$i = \left(1 + \frac{0.08}{12}\right)^{12} - 1 ≈ 0.0830$$

The Effective Annual Yield is approximately 0.0830 or 8.30%.