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.
- Simple Annual
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- Compounded Annual
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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
- Enter the per-period premium rate (% of notional).
- Enter rolling cycles per year (e.g. 12 monthly).
- 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.