Methodology

How we calculate real yields, source our data, and ensure transparency.

011. Real Yield Calculation

Real yield represents the actual purchasing power gain (or loss) of an investment after accounting for all costs that reduce returns: fees, taxes, and inflation.

Formula:Real Yield = (Gross Yield - Fees) × (1 - Tax Rate) - Inflation

Step 1: Net Yield (after fees)

Subtract annual fees (TER for funds/ETFs, account fees for savings) from the gross yield.

Step 2: After-Tax Yield

Apply the applicable tax rate on interest income. Tax rates vary by country and product type (e.g., Italy taxes government bonds at 12.5% vs 26% for other income).

Step 3: Real Yield (after inflation)

Subtract the current inflation rate (HICP YoY) to determine the change in purchasing power. A positive real yield means your money grows in real terms; negative means it loses purchasing power despite earning interest.

022. Data Sources

European Central Bank (ECB)

€STR (Euro Short-Term Rate) - official overnight rate
Government bond yields via SDMX API

Source: ecb.europa.eu/stats

Eurostat

HICP (Harmonised Index of Consumer Prices) - monthly inflation data
Country-specific inflation rates (Year-over-Year)

Source: ec.europa.eu/eurostat

Banks & Financial Institutions

Published interest rates from official bank websites
Term deposit rates, promotional rates, and conditions

Verified manually and updated regularly

Fund & ETF Providers

Total Expense Ratios (TER) from official fund documents (KIID/KID)
Current yields from fund factsheets

Source: iShares, Amundi, Xtrackers, Invesco official sites

3. Tax Rates

Tax rates displayed are standard withholding tax rates on interest income for each country. These are simplified for comparison purposes.

Individual income brackets and total income
Product type (government bonds may have preferential rates)
Residency status and double taxation treaties
Available deductions and exemptions (e.g., German Sparerpauschbetrag)
Holding period (some jurisdictions offer long-term benefits)

We provide a tool to adjust tax rates manually in our calculator. Always consult a qualified tax advisor for your specific situation.

5. Limitations & Disclaimers

Errors Are Possible

Despite our best efforts to ensure accuracy, mistakes can occur. Bank rates change frequently, promotional conditions may expire, and manual data entry is subject to human error. We are not responsible for any financial decisions made based on information displayed on this site.

Not Financial Advice

EuroYields is an educational comparison tool only. Nothing on this website constitutes financial, investment, tax, or legal advice. We are not licensed financial advisors.

No Liability

We accept no liability for losses, damages, or missed opportunities resulting from the use or reliance on information provided on this site. Always verify rates and conditions directly with financial institutions before making decisions.

Questions About Our Methodology?

We're happy to explain our approach in more detail or discuss data corrections.