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Tax-Equivalent Yield Calculator

Convert a municipal bond yield into the taxable yield needed to produce the same after-tax income.

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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.