Bond Yield Calculator

Calculate the taxable equivalent yield of any tax-exempt bond so you can compare it fairly against taxable investments.

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Enter your bond details

Three steps — fill in what applies to your bond, then click Calculate.

How to use this calculator

Enter the bond’s nominal yield — the stated interest rate on the bond
Check any tax exemptions that apply to your bond (most municipal bonds are exempt from federal taxes; many are also exempt from state and local taxes)
Enter your income tax rates for each applicable level — use 0 if you have no state or local tax
Click Calculate to see the taxable equivalent yield

Step 1 — Bond yield

Nominal Yield

The stated interest rate of your bond

Step 2 — Tax exemptions (check all that apply)

Exempt from federal income taxes Most municipal bonds

Exempt from state income taxes Treasuries and most municipal bonds issued by your state, county, or city

Exempt from local income taxes Treasuries and most municipal bonds issued by your county or city

Step 3 — Your tax rates

Federal Income Tax Rate

State Income Tax Rate

Use 0 if you have no state income tax

City / Local Income Tax Rate

Use 0 if you have no local income tax

Your result

Results appear here after you click Calculate.

Enter your bond details and click Calculate to see your taxable equivalent yield.

Taxable Equivalent Yield

—%

Your inputs

Nominal yield—

Federal exempt—

State exempt—

Local exempt—

Effective tax rate applied—

What this means

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Disclaimer: This calculator is provided for educational and informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Results are estimates based on the figures you enter. Tax laws vary by state and locality and may change — consult a licensed tax advisor or financial professional before making investment decisions. IncomeTrader.com is not responsible for any investment decisions made based on this tool.