Formula
- Use the units shown beside each field.
- Results update automatically whenever you change an input.
- Displayed values use up to four decimal places, or scientific notation for very small or large numbers. Calculations use standard floating-point arithmetic; exact integer and fraction tools identify their own precision rules.
- Assumes interest is fully deductible and the tax shield can be used. Enter the applicable rate; no tax law is encoded.
Example Calculation
- Pretax debt cost: 8 %
- Applicable marginal tax rate: 25 %
Pretax debt cost = 8 %; Applicable marginal tax rate = 25 %. The primary result is 6.
Frequently asked questions
How do I use this calculator?
Enter pretax debt cost, applicable marginal tax rate. The result updates automatically. Use Reset to restore the example values.
What method does it use?
after-tax cost=debt cost × (1−tax rate).. Assumes interest is fully deductible and the tax shield can be used. Enter the applicable rate; no tax law is encoded.
Why might a rounded result differ?
The calculation keeps full numeric precision internally, then rounds the displayed result. Rounding intermediate steps by hand can produce a slightly different answer.
Are my inputs saved online?
No. This calculator processes your inputs in your browser. A recently used list stores only calculator names on this device, not your entered values.
Check the assumptions and units before using this result. Read about calculation methods.