Finance / CALCULATOR

Taxable-Equivalent Yield

Taxable-Equivalent Yield: a supplied-input model with explicit assumptions and a worked example.

Runs on your deviceUpdates as you typeFormula & example ↓
01

Your inputs

Adjust the values to explore a different result.

%
Enter tax-exempt yield in %.
%
Enter relevant marginal tax rate in %.

Formula

taxable-equivalent yield=tax-exempt yield/(1−tax rate).
  • 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 full exemption from the entered tax and comparable risks. No jurisdiction, account type or tax eligibility is inferred.

Example Calculation

Example inputs
  • Tax-exempt yield: 3 %
  • Relevant marginal tax rate: 25 %

Tax-exempt yield = 3 %; Relevant marginal tax rate = 25 %. The primary result is 4.

Frequently asked questions

How do I use this calculator?

Enter tax-exempt yield, relevant marginal tax rate. The result updates automatically. Use Reset to restore the example values.

What method does it use?

taxable-equivalent yield=tax-exempt yield/(1−tax rate).. Assumes full exemption from the entered tax and comparable risks. No jurisdiction, account type or tax eligibility is inferred.

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.