TAXABLE EQUIVALENT YIELD CALCULATOR
Not all investment yields are created equal. A municipal bond offering a “lower” yield may actually provide a better after-tax return than a higher-yielding taxable bond, depending on your tax situation. Our Taxable Equivalent Yield Calculator helps you make an apples-to-apples comparison by adjusting for the impact of taxes.
Please note: These calculators provide estimates for illustration only. Replace the sample numbers with your own to see a personalized scenario - and reach out to ReyMar Wealth Management for advice tailored to your goals.
UNDERSTANDING TAXALBE EQUIVALENT YIELD
When evaluating investments, it’s important to look beyond the headline numbers. A taxable bond may show a higher interest rate, but once taxes are deducted, your effective return could be much lower. On the other hand, tax-free bonds, such as municipal bonds, may offer lower yields but allow you to keep more of what you earn.
​
The Taxable Equivalent Yield Calculator shows you exactly how much a taxable bond would need to yield to match the after-tax return of a tax-free investment. By entering the yield of a tax-free bond and your tax bracket, you can quickly compare options and make more informed decisions about where to put your money.
​
This tool is especially useful for investors in higher tax brackets, where the advantage of tax-free bonds can be significant. Use it to evaluate your portfolio choices and maximize your after-tax income.
OTHER CALCULATORS
LOANS & CREDIT
RETIREMENT & INVESTING
• Cost of Retirement Calculator →
INSURANCE & RISK
• Life Insurance Needs Calculator →
• Long-Term Care / Disability Insurance Calculator →
OPTIONAL CASH MANAGEMENT
This hypothetical example is used for illustrative purposes only. Actual results will vary.
​
This information is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek guidance from an independent tax or legal professional. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.
​
This material was written and prepared by ReyMar Wealth Management.
© 2025 ReyMar Wealth Management, LLC