Tax Equivalent Yield Calculator
Compare tax-free and taxable investments
How to Use This Calculator
Enter a tax-free yield (e.g., municipal bond) and your marginal tax rate. The tool shows the equivalent taxable yield.
Formula
TEY = Tax-Free Yield / (1 − Tax Rate)
Tax rate expressed as a decimal (e.g., 32% → 0.32).
About TEY
TEY helps compare after-tax returns between taxable and tax-exempt securities.
Frequently Asked Questions
Which tax rate should I use?
Use your marginal tax rate; consider state taxes if applicable.