Tax-Equivalent Yield Calculator
Compare tax-exempt municipal bonds with taxable bonds to find the better after-tax investment.
Important Financial Disclaimer
This calculator provides estimates based on standard financial formulas from verified references. Results are for informational and educational purposes only and should not be considered as professional financial, investment, or tax advice.
For important financial decisions such as loans, investments, mortgages, retirement planning, or tax matters, please consult with qualified financial advisors, certified financial planners, or licensed tax professionals who can review your specific situation.
Calculations may not account for all variables specific to your circumstances, local regulations, or current market conditions. Always verify results and consult professionals before making financial commitments.
Not a substitute for professional financial advice
Investment Details
Tax-Equivalent Yield shows what taxable yield you would need to match the after-tax return of a tax-exempt municipal bond.
Tax-Equivalent Yield
5.54%
equivalent taxable yield needed
Recommendation
The taxable bond is better by 0.46%
At your tax bracket, the 4% municipal bond equals a 5.54% taxable yield.
Yield Comparison
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