The formula to calculate the Return on Yield (ROY) is:
ROY=NRRPA×100
Where:
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.
Let's assume the following values:
Using the formula:
ROY=5002000×100=25%
The Return on Yield (ROY) is 25%.