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
Enter a principal amount and up to three annual yields (savings rate, dividend yield, bond coupon — whatever you're comparing). The tool returns the annual income each yield produces, identifies the highest, and shows the annual gap between the best and worst. Use it to sanity-check whether a higher-yield product is meaningfully better or just marginally so.
Enter Values
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Formula Used
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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
Try 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. Identify which ones matter most by flipping each value past a round threshold and watching whether the winning option changes.
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. Use it to test ideas before committing: what happens if the rate is 2% lower than hoped, what happens if you add five more years. The value is in the scenarios you run, not the single answer you get from the defaults.
The highest yield pays the figure shown above in annual income on your principal.
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
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.
Frequently Asked Questions
Does this account for tax?
Does it compound?
What about risk?
Can I compare rental yield to savings?
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