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Tax-equivalent yield calculator

Compare a tax-free yield with a taxable one by computing its tax-equivalent yield.

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Enter Tax-free yield (%), Marginal tax rate (%) and the Tax-equivalent yield calculator works out Tax-equivalent yield straight away. For instance, with Tax-free yield (%) = 3 and Marginal tax rate (%) = 30 it returns Tax-equivalent yield = 4.29%.

How to use it

  1. Enter your values: Tax-free yield (%), Marginal tax rate (%).
  2. Read the result instantly: Tax-equivalent yield.

Frequently asked questions

What does the Tax-equivalent yield calculator actually compute?

It takes Tax-free yield (%) and Marginal tax rate (%) and derives Tax-equivalent yield from them. The calculation is live as you type, so the result updates on every change.

What information do I need to provide?

2 values: Tax-free yield (%) and Marginal tax rate (%). Nothing else is required — no account, no file upload.

Can you show a worked example?

With Tax-free yield (%) = 3 and Marginal tax rate (%) = 30, the calculator returns Tax-equivalent yield = 4.29%. Those figures come from running this exact tool, so you can reproduce them by entering the same values.

What happens if I enter larger values?

It moves a lot. Using Tax-free yield (%) = 3.3 and Marginal tax rate (%) = 33 instead, Tax-equivalent yield goes from 4.29% to 4.93% — which is why it is worth testing a few scenarios rather than trusting a single figure.

What does it give for smaller values?

Scaled down to Tax-free yield (%) = 2.7 and Marginal tax rate (%) = 27, Tax-equivalent yield comes out at 3.7%. The relationship is worth checking at both ends before you rely on a single result.

When would I actually use this?

Working out what a bracketed tax actually costs, adding or removing VAT from a price, and checking a figure a form or an invoice gave you.

What is the most common mistake?

Applying the top bracket to the whole income. Brackets are marginal: only the part above each threshold is taxed at that rate, which is why the effective rate is always lower than the marginal one.

How accurate is it, and what are the limits?

Estimate only — not financial advice.

What is the difference between the Tax-equivalent yield calculator and the Crypto tax calculator?

This one returns Tax-equivalent yield; the Crypto tax calculator returns Capital gain and Tax owed. That is the whole difference — open the one whose figure you need.

Is there a tool for the next step?

Income tax calculator is the closest one after this: Estimate French income tax from taxable income and household parts.

Further reading

All guides →
ExplainerTax-Equivalent Yield: Comparing a Tax-Free Bond With a Taxable OneTaxable-equivalent yield = tax-free yield ÷ (1 − marginal rate). A 3.00 percent tax-free yield is worth 3.85 percent at a 22 percent marginal rate and 5.07 percent at 40.8 percent. The trap is that it is the marginal rate, surtaxes and social levies included — leaving them out costs 0.85 points of yield.ExplainerThe Turnover Thresholds That Switch Your Regime — and What Crossing One Costs on the DayFour European countries, four different answers to the same question: at what point does a small business stop being treated as small? The thresholds matter less than the clock attached to them — some bite the day you cross, others wait for January.ComparisonSole Trader or Company: the Profit at Which Incorporating Starts to PayThere is a formula, and it is short: your living needs plus the company's fixed annual cost divided by the rate spread. That is why the answer is a threshold and not a preference — and why the threshold sits in four very different places in France, Germany, Spain and Italy in 2026.ExplainerPrice Return, Total Return and Yield Are Three Different NumbersThe index quoted in the news is almost always a price index. At 5 percent price growth and a 2.5 percent reinvested yield, 30 years turn $10,000 into $43,219 on price and $90,656 on total return — the price measure misses 58.8 percent of the gain.GuideHow Crypto Tax Is Calculated: The Principles That Apply EverywhereRates differ by country, the mechanics rarely do: a disposal triggers a gain, the gain is proceeds minus cost basis, and staking is income. Here is the calculation and where jurisdictions diverge.ExplainerHow Income Tax Is Calculated: Brackets and Rates ExplainedUnderstand marginal vs. effective tax rates, how progressive brackets work, and why a raise never gets fully taxed away — with a clear worked example.