Before and After Tax Rate of Return Calculator

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This calculator computes an after tax rate of return from a before tax rate of return, or vice versa.

Example

Is the after-tax yield of a 9% corporate bond higher for a taxpayer in a 28% tax bracket than a 5% municipal tax-free bond?

Field Input
Annual rate of return 9%
Is annual rate of return before taxes? Yes
Federal tax rate 28%

In this example, the 9% corporate bond is equivalent to an after tax annual rate of return of 6.48%. This is a higher after-tax yield than the tax-free municipal bond of 5%.

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