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Bond Yield Comparison Calculator

Is an 8% taxable bond a better investment than a municipal bond with a 6% tax-free yield? When evaluating different types of bonds, it is important to compare the yields on a common basis – either on a before-tax or after-tax rate of return. To complicate things further, the taxable equivalent yield of a bond is different for every investor because your personal income tax rate impacts the yield. Use the calculator below to determine the after-tax yield of a taxable bond or the taxable equivalent yield for a tax-free bond.

Which would you like to calculate?

After-tax yield of a taxable bond
Taxable equivalent yield for a tax-free bond

Bond yield:

 %

Your Federal tax rate:

 %

Your state tax rate:

 %

Is the bond exempt from state tax?

Yes    No

Your % taxable bond will yield % after all taxes.

Your % tax-free bond is equivalent to a taxable bond yield of %