Tax-Equivalent Yield Calculator

How to use this calculator

Enter the tax-exempt yield, federal and state marginal tax-rate assumptions, and a taxable alternative yield. The tool estimates tax-equivalent yield and after-tax taxable yield.

When this calculator is useful

• Comparing municipal bonds with taxable bonds
• Evaluating Treasury bills versus CDs after taxes
• Understanding why headline yield is not always take-home yield

Important limitations

Tax treatment varies. Treasury interest is generally exempt from state and local income taxes, while municipal-bond rules and AMT exposure can differ. Consult a tax professional.

For best results, run at least three cases: a conservative case, a middle case, and a stretch case. If a small change in inputs creates a big change in the answer, that is a sign the decision may be sensitive to rates, fees, timing, or market performance.