**Yield** is the monetary gain, and the **interest rate** is why you made the extra funds. The **interest rate** is indicated as a percentage. Whether you are paying or receiving dividends, the **interest rate** is the percentage of money above the initial amount.

The **yield** is how much money you gained from the initial investment. You can explain **yield** into terms of a percentage, and you can also do it easily in dollar amounts. With yields, you can compound an **interest rate**. On the other hand, with interest rates, you cannot compound the interest.

**Yield** is recognized through simple math. Take your original investment and divide it by the **interest rate**, which will give you your basic term **yield**. The **interest rate** is how many additional profits produced each term. The **interest rate** is bound in percentages.