Tax-Equivalent Yield Calculator

Understand the investment calculation

What the Tax-Equivalent Yield Calculator is for

Compare an entered tax-exempt yield with a taxable yield using a user-entered tax rate.

It makes the prices, cash flows, rates, time periods, weights, and model conventions explicit so you can inspect an entered scenario without hidden live-market assumptions.

Calculation structure

Follow the stated model and units

Tax-equivalent yield = tax-exempt yield ÷ (1 − entered tax rate).

Visual explanation

See how the inputs become the result

Coupons+Face value→Present valueDiscount every cash flow using the entered timing conventionTax-equivalent yield = tax-exempt yield ÷ (1 − entered tax rate).

Read the estimate correctly

Use the result within its boundaries

A 4% exempt yield and 20% entered tax rate produce a 5% tax-equivalent yield.

No jurisdiction, tax status, allowance, surcharge, or legal exemption is assumed. Enter a rate only when it applies to the comparison.

Quick guide

How to use this calculator

Enter only the market, accounting, cash-flow, rate, or timing assumptions named by the fields.
Keep currencies, periods, per-share values, and percentage conventions consistent.
Review the formula and limitations before interpreting or comparing the result.

Calculation method

Tax-equivalent yield = tax-exempt yield ÷ (1 − entered tax rate).

Fixed decimal inputs and scalar arithmetic remain exact until display. Root and growth calculations are explicitly marked approximate.

Worked example

A 4% exempt yield and 20% entered tax rate produce a 5% tax-equivalent yield.

Tax-equivalent yield = tax-exempt yield ÷ (1 − entered tax rate).

Supported inputs

Precision and limits

Visible input limits

Fixed decimals accept up to 30 digits and 12 decimal places and are capped at an absolute value of 1e12 per input. Rates are capped at 1000%; narrower domains are validated by the formula.

International scope

No currency, exchange, live security price, accounting standard, tax jurisdiction, market convention, settlement rule, or regulatory disclosure is selected automatically.

Decision boundary

Results are calculations from visitor-entered assumptions, not market data, forecasts, financial advice, suitability assessments, fair-value opinions, or recommendations.

Calculator-specific assumptions

No jurisdiction, tax status, allowance, surcharge, or legal exemption is assumed. Enter a rate only when it applies to the comparison.