Before and After Tax Rate of Return

Calculate an after tax rate of return from a before tax rate of return, or vice versa.

To open this calculator, click Calculators in the toolbar, and then click Personal Finance > Before and Aftger Tax Rate of Return in the left panel.

You can export the data as a PDF file or clear all data that you entered. For more information, see Financial calculators.


For a taxpayer in a 28% tax bracket, is the after-tax yield of a 9% corporate bond higher than a 5% municipal tax-free bond?

Field Input
Annual rate of return 9%
Is annual rate of return before taxes? Yes
Federal tax rate 28%

In this example, the 9% corporate bond is equivalent to an after tax annual rate of return of 6.48%, a higher after-tax yield than the tax-free municipal bond of 5%.

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