Tax-Equivalent Yield Calculator
UtilityBrowser only
Compare tax-free bond yields with taxable investments.
Processes inputs in your browser
Taxable equivalent yield
6.25%A link to this result includes the entered numbers in its URL.
Uses the entered marginal rate only. State, local, and alternative minimum tax treatment can change the comparison.
Behind the result
About this Tool
Convert a municipal bond yield into the taxable yield needed to produce the same after-tax income.
How it works
Divides the tax-exempt yield by one minus the entered marginal tax rate.
A practical way to use it
Compare a 4% municipal bond with taxable alternatives at a 32% marginal federal rate.
Use results as a practical aid, and verify important decisions against your own source data and qualified guidance.
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