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.
Quick answer: with the default values, the result is $520.00 (Highest Annual Income). Adjust the values below for your own figures.
Enter Values
People also use
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 Yield vs Inflation Calculator
Calculate real bond yield by adjusting nominal yield for inflation. Enter nominal bond yield to see real yield: nominal bond yield adjusted for inflation.
Investing
Investment Return Comparison Calculator
Compare two investments' final values after the same time horizon at different expected returns — see how much a few percentage points really matter.
Formula Used
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 — meaningful if the higher yield is genuinely low-risk, less so if it 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 add up; a large gap on a small principal may not justify the effort of switching.
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
Take a principal of 10,000 with yields of 3%, 4.5%, and 5.2%. The tool returns 520.00.
What moves the number most
The result responds to Principal, Yield A, Yield B, and Yield C.
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.
Where this fits in planning
This is a "what-if" tool, not a forecast. It helps to test ideas — what happens if a yield comes in a couple of points lower than hoped, or if a different option turns out to pay the most. 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
| Income at Yield A | $300.00 |
|---|---|
| Income at Yield B | $450.00 |
| Income at Yield C | $520.00 |
| Spread (Best − Worst) | $220.00 |
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.
References
Frequently Asked Questions
Does this account for tax?
Does it compound?
What about risk?
Can I compare rental yield to savings?
Related Calculators
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 Yield vs Inflation Calculator
Calculate real bond yield by adjusting nominal yield for inflation. Enter nominal bond yield to see real yield: nominal bond yield adjusted for inflation.
Investment Return Comparison Calculator
Compare two investments' final values after the same time horizon at different expected returns — see how much a few percentage points really matter.
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
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.
Investing
Asset Allocation Drift Calculator
Calculate drift between current and target asset allocation to decide if rebalancing is needed. Enter equity to see drift percentage and rebalance flag.
Explore Other Financial Tools
Planning
Buy vs Lease Car Calculator
Compare the total cost of buying a car outright against leasing across a matched ownership period. Enter buy price to see net cost of each path over the period.
Mortgage
Mortgage Refinance Calculator
Calculate monthly savings and total interest reduction from refinancing your mortgage to a lower rate, including arrangement fees.
Startup & VC
Angel Investment Return Calculator
Calculate angel investment exit proceeds, MOIC, and IRR with dilution factored in, given initial investment and initial ownership percentage.
Spotted something off?
Calculations or display — let us know.