7 Day Yield Calculator: Turn a Short-Term Return Into a Real Annual Number
Enter a 7-day income figure and see both the standard 7-day yield and the 7-day compound (effective) yield, calculated the same way money market funds report them, plus how that compares to other short-term returns.
Enter your 7-day figures
Calculates instantly in your browser. Nothing you enter is stored or transmitted.
Choose whichever figures you actually have on hand. Both modes produce the same type of result, just from different starting numbers.
The amount invested at the start of the 7-day period, before this period's income was added.
The dividend or interest income the fund or account actually paid out over the period, excluding any capital gains or losses, which the standard yield formula deliberately leaves out.
Some statements report a period slightly different from exactly 7 days. Choosing a custom range recalculates the actual number of days and annualizes correctly using that real figure instead of assuming 7.
Your annualized yield
Enter your figures and press calculate to see the full breakdown.
What this yield means over other timeframes
| Timeframe | Approximate return |
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Why a 7-day yield exists in the first place
Money market funds don't pay a fixed, locked-in interest rate the way a bond does. Their yield shifts daily with short-term interest rates, which makes a single "current rate" hard to pin down. Regulators solved this by requiring funds to report a standardized 7 day yield, a short, rolling snapshot of actual income earned over the past week, then annualized using a consistent formula so investors can compare one fund against another on equal footing, rather than each fund choosing its own method.
This calculator follows that same standardized approach, giving you both the simple annualized figure and the compound version that assumes income keeps getting reinvested at the same pace, which is exactly how these numbers are meant to be read side by side.
How the calculation works
Simple yield versus compound (effective) yield, explained plainly
The simple yield answers "if this exact rate held steady, uncompounded, for a full year, what would that look like?" The compound yield answers a slightly different question: "if income kept reinvesting at this same pace every week for a full year, what would the effective annual return actually be?" The compound number is always a little higher than the simple one, and it's the version that more closely reflects what an investor would actually earn if nothing changed and everything reinvested automatically.
Reading your result breakdown
Once calculated, you'll see the standard annualized yield front and center, with the simple and compound versions shown side by side underneath so you can see exactly how much reinvestment adds on its own. Below that, a set of quick stats shows your base period return, the actual number of days used in the calculation, and the daily equivalent rate. A comparison table then translates that same rate into what it would look like over a month, a quarter, and a full year, which is a useful gut check against other short-term rates you might be comparing it to.
A quick worked example
Say a fund starts the week at exactly 1.000000 per share and ends it at 1.000192 per share, purely from income, with no capital gains involved. The base period return is 0.0192%. Multiplying that by 365 divided by 7 gives a simple annualized yield a little above 1%. Running the compound version instead, using the same base return raised to the power of 365 divided by 7, gives a slightly higher effective yield, reflecting what continuous weekly compounding would produce over a full year.
Frequently asked questions
What is a 7 day yield and why do money market funds use it?
A 7 day yield is a standardized, annualized measure of the income a money market fund earned over the most recent 7 days. Regulators require this specific format so investors can compare different funds on equal footing, since money market rates shift daily with short-term interest rates.
How is the 7 day yield calculated?
Income earned over the period is divided by the starting balance or beginning share value to get a base period return, which is then multiplied by 365 divided by the number of days in the period (usually 7) to produce the standard annualized simple yield.
What is the difference between the 7 day yield and the 7 day compound yield?
The standard 7 day yield is a simple annualization of the base period return. The 7 day compound, or effective, yield assumes the same weekly return keeps reinvesting throughout the year, which produces a slightly higher figure that more closely reflects actual compounded growth.
Does the 7 day yield include capital gains or losses?
No. The standardized formula specifically uses income only, such as interest or dividends, and deliberately excludes any capital gains or losses in the fund's share price, keeping the figure focused purely on income-based return.
Can I calculate a yield over a period other than exactly 7 days?
Yes. This calculator includes a custom date range option that recalculates the actual number of days between two dates and annualizes correctly using that real figure, which is useful when a statement reports a period slightly different from a clean 7 days.
Is a higher 7 day yield always better?
Generally a higher yield reflects a better short-term return, but it's worth comparing funds with similar risk profiles and fee structures, since a higher yield can sometimes come with slightly higher risk or expenses that eat into the actual return you keep.
Related tools you might find useful
A few connected tools cover related financial and date-based questions this one doesn't.
Tracking a broader financial or personal routine? The day calendar calculator and 90 day calculator are handy companions for the everyday date math around a statement cycle.
This tool provides general educational calculations based on the standardized formula commonly used for money market fund yield reporting. It is not investment advice. Actual fund yields can vary daily, and this calculator does not account for fees, expense ratios, or tax treatment specific to your account or jurisdiction.