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Tax-Equivalent Yield Calculator

Pre-tax yield equivalent to a tax-free yield.

Compute the pre-tax (taxable) yield that would be required to match a tax-free municipal-bond yield, given your marginal tax rate.

Nadia Almasri By Nadia Almasri
Published Last reviewed 1 min read

Inputs

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Results

Enter values and click Calculate to see results.
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How to use this calculator

  1. Fill in the inputs above using the units you already have.
  2. Values update automatically as you type — no submit button needed.
  3. Hover any result row for the underlying formula and intermediate values.

Formula

TEY = TFY / (1 − tax_rate)

In depth

Compute the pre-tax (taxable) yield that would be required to match a tax-free municipal-bond yield, given your marginal tax rate.