After-Tax Yield Calculator

Calculate your real return after taxes and compare taxable vs tax-free yields.

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After-Tax Yield

Enter the nominal yield, your tax rate, and tax status.

After-tax yield
0%
Tax-equivalent yield: 0%
Nominal yield
0%
After-tax yield
0%
Tax-equivalent yield
0%
Tax paid per $10,000
$0
Tax saved (if tax-free)
$0
Effective return
0%

Worked example

With the default inputs shown below, this calculator returns the following results:

InputValue
Nominal yield (%)5%
Marginal tax rate (%)24%
Tax statusTaxable (e.g., corporate bond)
ResultValue
After-tax yield3.80%
Nominal yield5%
Tax-equivalent yield5.00%
Tax paid per $10,000$120.00
Tax saved (if tax-free)$0.00
Effective return3.80%

Values shown are produced by this page in your browser; change any input to update them.

How to use the After-Tax Yield

  1. Nominal yield (%) — default 5%
  2. Marginal tax rate (%) — default 24%
  3. Tax status — default Taxable (e.g., corporate bond)
  4. Press Calculate to update the results instantly.

Frequently asked questions

It is the return you actually keep once income tax is applied to the interest or dividend. A 5% taxable yield becomes 3.8% at a 24% marginal rate.
It converts a tax-free yield into the taxable yield you would need to match it. A 3.8% municipal yield equals a 5% taxable yield at a 24% rate.
When its after-tax yield beats a comparable taxable bond. High earners in high-tax states usually gain the most from municipal bonds.

Sources & references