Tax-equivalent yield calculator
Comparing tax-exempt and taxable bonds.
Interactive: tax-equivalent yieldEasy
A 3% tax-free bond and a 4.5% taxable bond — which wins? Depends entirely on your marginal rate. Gross up and compare.
- Tax-equivalent yield
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- Taxable bond after tax
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- Verdict
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- Edge per year
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The arithmetic behind the entire municipal bond market. Tax rules differ by country and instrument — this is the concept, not your tax return.
The idea behind it
This calculator belongs to Fixed Income, where the mechanism it computes is explained step by step, with the formula, what each input means and where the simple model stops being right. Everything is computed in your browser; nothing you type is sent anywhere.
Instruments it applies to
- Municipal Bond — Lending to cities, states and school districts — with the US tax code, not the coupon, doing half the work.
More calculators from Fixed Income
- Bond price, duration & convexity — the full price–yield toolkit.
- Yield-to-maturity solver — from price to yield by bisection.
- Loan & mortgage amortisation — payment, total interest, the first-payment split.
- Bond ladder planner — rungs, average yield, annual income.
- Accrued interest & dirty price — what you actually pay.
- Real return after inflation — Fisher's equation, exactly.