1. What is Yield Percentage?

Yield Percentage is a financial metric that measures the income generated as a percentage of the cost invested. It helps evaluate the efficiency and profitability of an investment.

2. How Does the Calculator Work?

The calculator uses the Yield Percentage formula:

Where:

• \( Income \) — Total income generated (in USD)
• \( Cost \) — Total cost invested (in USD)

Explanation: The formula calculates what percentage of the original cost is returned as income.

3. Importance of Yield Calculation

Details: Yield percentage is crucial for comparing investment opportunities, assessing financial performance, and making informed business decisions.

4. Using the Calculator

Tips: Enter income and cost in USD. Both values must be positive numbers, and cost must be greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: What's a good yield percentage?
A: This varies by industry, but generally higher percentages indicate better returns. Compare with industry benchmarks.

Q2: How is this different from ROI?
A: Yield percentage focuses on income relative to cost, while ROI typically considers net profit (income minus cost).

Q3: Can yield percentage exceed 100%?
A: Yes, if the income exceeds the original cost, the yield will be greater than 100%.

Q4: Should I use gross or net income?
A: Depends on your analysis purpose - gross yield shows total income percentage, net yield shows profit percentage.

Q5: How often should I calculate yield?
A: Regular calculation (monthly/quarterly) helps track performance trends over time.