Occasionally, I’ll borrow from my son’s savings account to purchase an item I need. I’ll use the item and later sell it, paying my son back his initial loan amount plus a healthy Return On Investment ( ROI ) or Yield.

It was only after I started calculating the Yields I was paying my son and sharing them with relatives, that I discovered how few people understand the concept of a Yield and how much time plays a part of the calculation.

If you invest $1000 and get a $50 ROI ( Return On Investment ), is that a good Yield? Possibly, if you receive your initial investment back within 7 days along with your ROI ( Return On Investment ) or Yield ( stated as a percentage, similar to an interest rate ).

What if you invested $1000 and it took a year to get your investment back along with the $50 ROI ( Return On Investment )? I would say your ROI or Yield would be okay, but not the greatest.

Input the following into the Yield Calculator below: $1000 for the Amount Invested, $50 for the Amount Earned, and then input different amounts of time ( months, days, hours, minutes ) to see how the length of time affects the ROI or Yield. ( input increments of time that are less than 1 year ) You may print your results so you may see them later.

See your Yield in the field at the bottom labeled, Yield Percentage Earned.

Note: If you input an increment of 1 second for the calculation above, the Yield will be 155,520,000 %

That’s because the annual interest rate a bank would be paying an investor who Banked $1000 for a year with them if they had to pay him $50 per second, every second for 1 year would be 155,520,000 % interest.