Premium Yield Calculator

From premium as a % of notional per period and cycles per year, estimate simple and compounded annualized income.

Results

Fill in the inputs and click Calculate.

Risk disclaimer

An income estimate only; loss paths and margin risk are not modelled.

What differs between the two?

Simple = premium per period × cycles, a quick look; compounding reinvests each period's income.

You must derive the rate yourself (income ÷ notional/margin); this page only multiplies.

How to use

  1. Enter the per-period premium rate (% of notional).
  2. Enter rolling cycles per year (e.g. 12 monthly).
  3. Click Calculate to compare the two annualizations.

Formula

  • Simple annual = rate × cycles
  • Compound annual = (1 + rate)^cycles − 1

Example

1% per month rolled 12× → simple 12%, compounded ≈ 12.68%.

Fees and slippage excluded; you may not always collect the premium.

FAQ

Guaranteed income?

No — moves can make the strategy lose or expire worthless; premium is not interest.