After-Tax Yield Calculator
Yield kept after tax on investment income.
Calculate after-tax yield on bonds or savings by entering your pre-tax yield and marginal income tax rate to see the return you actually keep.
What this tool does
Two investments at the same headline yield can leave very different amounts after tax. This calculator models how tax on investment income reduces the actual return you keep. You enter the pre-tax yield, your marginal tax rate on that income, and the principal amount. The calculator then estimates the after-tax yield, the cash income generated, the portion you retain after tax, and the total tax paid across the year. The marginal tax rate is the primary driver of the result—higher rates significantly compress the after-tax outcome. The tool illustrates scenarios like comparing bond yields or dividend income across different tax situations. Results assume tax is levied at a single flat rate and do not account for tax relief, deductions, or timing of payments. This is for educational modelling only.
Enter Values
Value is unusually high — please double-check
People also use
Inflation
Inflation Required Yield Calculator
Calculate the nominal yield needed to hit a real return target using the Fisher equation. Enter inflation rate and desired real return to get results.
Investing
Compound Interest Calculator
Free compound interest calculator with deposits, escalation, after-tax and inflation-adjusted projections, time-to-double, and a sortable monthly or yearly breakdown.
Income
Dividend After-Tax Calculator
Calculate the after-tax cash kept from dividend income at your marginal dividend tax rate. Enter gross dividend to see tax owed and the cash kept.
Formula Used
Spotted something off?
Calculations or display — let us know.
Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
A 5% pre-tax savings yield at a 40% marginal rate is a 3% after-tax yield. On 10,000 that means 300 kept versus 500 of headline income. Comparing taxable bonds, tax-free wrappers and dividend-paying assets requires comparing them on after-tax yield, not the headline number.
What the result means
After-tax yield is what you actually grow assets by. Use it to compare a taxable account against a sheltered wrapper at the same headline yield, or to compare two products at different headline yields and tax treatments.
The same math gives the equivalent taxable yield needed to match a tax-free product: divide the tax-free yield by (1 − tax rate).
Quick example
With pre-tax yield of 5% and marginal tax rate of 40% (plus investment amount of 10,000), the result is 3.00%. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.
Which inputs matter most
You enter Pre-Tax Yield, Marginal Tax Rate, and Investment Amount. Not every input has equal weight. Adjusting one input at a time toward extreme values shows which ones move the result most.
What's happening under the hood
After-tax yield is the pre-tax yield multiplied by one minus the marginal rate. Cash income is principal times pre-tax yield; cash kept is principal times after-tax yield; tax paid is the difference. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.
What the headline number hides
Gross pay, net pay, and what actually lands in your account can differ by thousands depending on tax code, benefits, pension contributions, and student loan deductions. This tool isolates one piece of that picture — always pair it with a take-home calculator for the full view.
What this doesn't capture
Tax bands, pension contributions, student-loan deductions, and benefits-in-kind sit outside this calculation. The figure is the headline; your actual position depends on local tax rules and personal circumstances. Pair with a dedicated take-home calculator for the full picture.
An investment of £10,000 at 5 pre-tax yield becomes 3.00% after accounting for 40 in taxes.
Inputs
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
This calculator computes after-tax yield by applying the marginal tax rate to the pre-tax yield. The calculation multiplies the pre-tax yield by the factor (1 minus the marginal tax rate), producing the yield rate retained after tax. The annual cash income is derived by multiplying the investment amount by the pre-tax yield. The after-tax cash income is then calculated by multiplying the investment amount by the after-tax yield. The tax paid is the difference between these two income figures. The model assumes a constant marginal tax rate applied uniformly to all investment income and does not account for progressive tax brackets, variations in tax treatment across income types, transaction fees, timing effects, or changes in tax rates over time.
References
Frequently Asked Questions
Why care about after-tax yield?
What rate ranges are typical?
Does this work for tax-free wrappers?
Inflation?
Related Calculators
Inflation Required Yield Calculator
Calculate the nominal yield needed to hit a real return target using the Fisher equation. Enter inflation rate and desired real return to get results.
Compound Interest Calculator
Free compound interest calculator with deposits, escalation, after-tax and inflation-adjusted projections, time-to-double, and a sortable monthly or yearly breakdown.
Dividend After-Tax Calculator
Calculate the after-tax cash kept from dividend income at your marginal dividend tax rate. Enter gross dividend to see tax owed and the cash kept.
More Income Calculators
Income
Airbnb Income Calculator
Calculate Airbnb income with monthly and annual net estimates from nightly rate, occupancy percentage, cleaning fees, and operating costs.
Income
Airbnb vs Long-Term Rental Calculator
Compare net income from Airbnb short-term rental vs long-term rental strategies with this annual income calculator for the same property.
Income
Amazon Flex Pay Calculator
Calculate net Amazon Flex earnings after vehicle costs and self-employment tax reserve. Enter hourly rate to see annual net income and effective hourly rate.
Income
Annual Bonus Compound Calculator
Future value of investing annual bonuses over a career at expected return. Enter bonus after tax and years to see compound fv of investing every bonus.
Income
Annual Gift Tax Allowance Value Calculator
Calculate the cumulative tax saving from your annual gift tax allowance over multiple years by entering your allowance amount, tax rate, and time period.
Income
Annual Leave Value Calculator
Calculate the monetary value of your annual leave days as a share of salary — useful when negotiating PTO into a comp package.
Explore Other Financial Tools
Creator Economy
Photography Business Calculator
Calculate photography profit from shoots per month, price per shoot, editing time, equipment depreciation, and marketing spend.
Investing
Private Equity Return Calculator
Calculate private equity net IRR and net MOIC after management fees and carried interest are deducted from your gross fund returns.
Money Insights
Pension Gap Visualiser
Calculate the gap between current pension pot path and target at retirement age. Enter monthly contribution to see shortfall and projected pot.