Yield Comparison Calculator
Compare the annual income from three different yields on the same principal.
Compare yields across three investments on the same principal. See which pays the most income per year and the gap between them.
What this tool does
This calculator models annual income generated from up to three different yields applied to the same principal amount. By entering your principal and three separate yield rates, the tool calculates the annual income each would produce, identifies which yield generates the most income, and shows the numerical gap between the highest and lowest performers. The result helps illustrate how yield differences translate into actual income variation on your capital. The principal amount and the yield rates themselves are the primary drivers of the output. A typical use case involves comparing income from different savings products, dividend-paying investments, or fixed-income securities side by side. The calculator treats all yields as simple annual rates and does not account for compounding frequency, tax implications, or changes in principal value over time. Results are for illustrative purposes only.
Enter Values
People also use
Investing
Yield on Cost Calculator
Calculate yield on cost showing dividend power for long-term holders — current dividend as a percentage of what you originally paid, not current price.
Investing
Fee Impact Comparison Calculator
See how two fee levels change the end value of an investment over 20 years — same balance and same return, just two different annual fees.
Investing
Bond Ladder Income Calculator
Calculate annual income from a bond ladder calculator using 5 rungs with custom face values, yields, and maturities to find blended yield.
Formula Used
Spotted something off?
Calculations or display — let us know.
Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
On 10,000 of principal, a 5% yield pays 500 a year; a 3% yield pays 300. The 2-point spread is 200 of income — worth chasing if it's truly low-risk, less so if the higher yield comes with more volatility or a lock-up period.
What the result means
The primary result is the highest annual income. The secondary rows show each yield's income and the gap between the top and bottom. A small gap on a big principal can still be worth chasing; a large gap on a small principal often isn't worth the switching effort.
What this tool doesn't capture
Risk, liquidity, tax treatment, and lock-up periods. A 5% yield with a 5-year lock is not directly comparable to a 4% easy-access rate. Use the yield gap as a starting point, not the final decision.
A worked example
With the defaults: principal of 10,000, yield a of 3%, yield b of 4.5%, yield c of 5.2%. The tool returns 520.00. You can adjust any input and the result updates as you type — no submit button, no reload. That's the real power here: seeing how sensitive the output is to one or two assumptions.
What moves the number most
The result responds to Principal, Yield A, Yield B, and Yield C. Two inputs usually tip the answer one way or the other. Flipping each value past a round threshold shows which input moves the result most.
The formula behind this
Annual income equals principal multiplied by the yield as a decimal. The tool ranks the three yields and shows the spread. Ignores compounding frequency — quoted yields are treated as simple annual rates. Everything the calculator does is shown in the formula box below, so you can check the math against your own spreadsheet if you want.
Where this fits in planning
This is a "what-if" tool, not a forecast. It helps to test ideas: what happens if the rate is 2% lower than hoped, or if you add five more years. The value is in the scenarios you run, not the single answer you get from the defaults.
Comparing 3, 4.5, and 5.2 on £10,000 principal shows $520.00 as the highest annual income.
Inputs
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
The calculator computes annual income by multiplying the principal amount by each yield, expressed as a decimal. It applies this calculation to all three yields, producing three separate income figures. The tool then ranks these yields from highest to lowest and displays the difference between the top and bottom performer. The model treats all quoted yields as simple annual rates and does not account for compounding frequency, reinvestment of income, fees, taxes, or inflation. Results reflect income generation only at a single point in time and assume yields remain constant. The comparison is nominal and does not adjust for any reduction in purchasing power or after-cost performance.
Frequently Asked Questions
Does this account for tax?
Does it compound?
What about risk?
Can I compare rental yield to savings?
Related Calculators
Yield on Cost Calculator
Calculate yield on cost showing dividend power for long-term holders — current dividend as a percentage of what you originally paid, not current price.
Fee Impact Comparison Calculator
See how two fee levels change the end value of an investment over 20 years — same balance and same return, just two different annual fees.
Bond Ladder Income Calculator
Calculate annual income from a bond ladder calculator using 5 rungs with custom face values, yields, and maturities to find blended yield.
More Investing Calculators
Investing
100 Minus Age Asset Allocation Calculator
Calculate stock-vs-bond allocation using the 100-minus-age rule of thumb — see the suggested percentage split for any age you put in.
Investing
Active vs Passive Investing Calculator
Compare active versus passive investing over the long run. See how a percentage point of extra fees compounds into a wealth gap over decades.
Investing
Annuity Present Value Calculator
Calculate the present value of an ordinary annuity from regular payments, periodic rate, and the number of periods until the stream ends.
Investing
APR to APY Calculator
Convert APR to APY for any compounding frequency to see the true effective annual yield — what you actually earn (or pay) on a given quoted rate.
Investing
Art Investment Calculator
Calculate art investment net returns including insurance and carrying costs, given purchase price, current value, and length of holding period.
Investing
Asset Allocation Calculator
Calculate suggested portfolio asset allocation by age and risk tolerance (stocks/bonds/cash). Enter risk tolerance 1-10 to see suggested stock and bond.
Explore Other Financial Tools
Income
Annual Bonus Compound Calculator
Future value of investing annual bonuses over a career at expected return. Enter bonus after tax and years to see compound fv of investing every bonus.
Mortgage
Years of Rent Lost Calculator
Calculate cumulative rent paid across years of renting and convert into the equivalent property purchase power that money would have funded.
Income
Retention Bonus Value Calculator
Convert a lump-sum retention bonus into an annual value to compare it fairly against a salary raise or alternative offer.