Tax-Free Yield
3.00%
Tax Equivalent Yield Calculator
Compare tax-free municipal bond yields to taxable equivalents.
Taxable-Equivalent Yield
4.41%
Tax Bracket
32.00%
A taxable bond must yield this much to match the after-tax return of the tax-free bond.
How to use the Tax Equivalent Yield Calculator
The Tax Equivalent Yield Calculator is free and runs entirely in your browser — no sign-up, and nothing you enter leaves your device. It opens pre-filled with a realistic example, so you can see how it works before replacing any figure with your own; the results update as you type. Press Calculate to refresh the result panel, or Reset to return to the example.
The inputs it asks for:
- Tax-Free Yield — a percentage (enter 6 for 6%).
- Marginal Tax Rate — a percentage (enter 6 for 6%).
Worked example
Using the example values — Tax-Free Yield 3%, Marginal Tax Rate 32% — the Tax Equivalent Yield Calculator returns a Taxable-Equivalent Yield of 4.41%. It also reports Tax-Free Yield (3.00%), Tax Bracket (32.00%).
Prefer your own numbers? Change any field above and this recomputes instantly.