Theoretical yield is what you expect to get, if a reaction doesn't finish you may end up with a lower yield than the expected theoretical yeild.
To work out theoretical yield it is important to understand that an equation gives you a ratio of moles, e.g.
Fe2O3 > 2Fe
tells us that every one mole of iron oxide makes two moles of iron. In this equation the weight of Fe will be your yield.
If we are told the weight of the Fe2O3 is 100g we can easily work out the theoretical yield:
Work out the moles of Fe2O3 by doing the weight (g) divided by the atomic mass: 100/160= 0.625Mol
We know that for every one mole of Fe2O3 there are two of Fe so we do: 0.625 x 2= 1.25 Mol
Now we have moles of Fe we can work out weight by Mol x Ar: 1.25 x 56= 70g
If you in fact got 62g of Fe you'd do (62/80)x100= 77.5%