Cumulative Yield Ratio Calculator calculator can be used to evaluate the performance of an investment by comparing the cumulative yield to the total investment over a specified period.
Learn how to use the Cumulative Yield Ratio Calculator calculator and its working principles
The Cumulative Yield Ratio is a measure of the performance of an investment. It is calculated by dividing the total returns by the initial investment and then dividing that result by the investment period. A higher cumulative yield ratio indicates a more profitable investment over the given period.
For example, if you invested $10,000 and earned $2,000 in returns over 5 years, the cumulative yield ratio would be calculated as follows:
Cumulative Yield Ratio = ($2,000 / $10,000) / 5 = 0.04 or 4%