Tax Equivalent Yield Calculator

✖Tax Free Yield is the income return on an investment, such as the interest or dividends received from holding particular security without any tax imposed.ⓘ Tax Free Yield [TFY]			+10% -10%
✖Tax Rate is the ratio (usually expressed as a percentage) at which a business or person is taxed.ⓘ Tax Rate [TR]			+10% -10%

✖Tax Equivalent Yield is the pretax yield that a taxable bond needs to possess for its yield to be equal to that of a tax-free municipal bond.ⓘ Tax Equivalent Yield [TEQY]

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Formula

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Tax Equivalent Yield

Formula

`"TEQY" = "TFY"/(1-"TR")`

Example

`"5"="2.5"/(1-"0.5")`

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Tax Equivalent Yield Solution

STEP 0: Pre-Calculation Summary

Formula Used

Tax Equivalent Yield = Tax Free Yield/(1-Tax Rate)
TEQY = TFY/(1-TR)
This formula uses 3 Variables

Variables Used

Tax Equivalent Yield - Tax Equivalent Yield is the pretax yield that a taxable bond needs to possess for its yield to be equal to that of a tax-free municipal bond.
Tax Free Yield - Tax Free Yield is the income return on an investment, such as the interest or dividends received from holding particular security without any tax imposed.
Tax Rate - Tax Rate is the ratio (usually expressed as a percentage) at which a business or person is taxed.

STEP 1: Convert Input(s) to Base Unit

Tax Free Yield: 2.5 --> No Conversion Required
Tax Rate: 0.5 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

TEQY = TFY/(1-TR) --> 2.5/(1-0.5)

Evaluating ... ...

TEQY = 5

STEP 3: Convert Result to Output's Unit

5 --> No Conversion Required

FINAL ANSWER

5 <-- Tax Equivalent Yield

(Calculation completed in 00.004 seconds)

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< 14 Tax Calculators

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Go Taxable Income for Corporation = Gross Sales-Cost of Goods Sold-Operating Expense-ceil(Interest Expense)-Tax Deduction

Maximum Refund Amount

Go Maximum Refund Amount = (Turnover of Inverted Rate Supply*Net Itc/Adjusted Total Turnover)-Tax Payable on Inverted Rate Supply of Gst

Total Eligible Credit

Go Total Eligible Credit = Total Itc-(Itc for Personal Expenses+Itc for Exempted Supplies+Non Eligible Itc)

Taxable Income for Individual

Go Taxable Income for Individual = Gross Total Income-ceil(Total Exemptions)-Total Deductions

GST Excluding Amount

Go Gst Excluding Amount = floor(Gst Including Amount)/(1+Goods and Service Tax Rate/100)

Partly Exempted

Go Partly Exempted = (Exempted Turnover/Total Turnover)*Common Credit

Retail Price

Go Retail Price = round(Price/(1+Percent),2)

Goods and Service Tax

Go Goods and Service Tax = Taxable Amount*Goods and Service Tax Rate

Common Credit

Go Common Credit = Total Eligible Credit-Normal Input Tax Credit

Sales Tax Amount

Go Sales Tax Amount = Price*(Sales Tax Percentage/100)

Tax Equivalent Yield

Go Tax Equivalent Yield = Tax Free Yield/(1-Tax Rate)

Effective Tax Rate

Go Effective Tax Rate = Tax Expense/Pre Tax Income

Total Sales Tax

Go Total Sales Tax = Price+Sales Tax Amount

Net Price

Go Net Price = Cost of Product+Gst Amount

Tax Equivalent Yield Formula

Tax Equivalent Yield = Tax Free Yield/(1-Tax Rate)
TEQY = TFY/(1-TR)

How to Calculate Tax Equivalent Yield?

Tax Equivalent Yield calculator uses Tax Equivalent Yield = Tax Free Yield/(1-Tax Rate) to calculate the Tax Equivalent Yield, Tax Equivalent Yield is the pretax yield that a taxable bond needs to possess for its yield to be equal to that of a tax-free municipal bond. Tax Equivalent Yield is denoted by TEQY symbol.

How to calculate Tax Equivalent Yield using this online calculator? To use this online calculator for Tax Equivalent Yield, enter Tax Free Yield (TFY) & Tax Rate (TR) and hit the calculate button. Here is how the Tax Equivalent Yield calculation can be explained with given input values -> 5 = 2.5/(1-0.5).

FAQ

What is Tax Equivalent Yield?

Tax Equivalent Yield is the pretax yield that a taxable bond needs to possess for its yield to be equal to that of a tax-free municipal bond and is represented as TEQY = TFY/(1-TR) or Tax Equivalent Yield = Tax Free Yield/(1-Tax Rate). Tax Free Yield is the income return on an investment, such as the interest or dividends received from holding particular security without any tax imposed & Tax Rate is the ratio (usually expressed as a percentage) at which a business or person is taxed.

How to calculate Tax Equivalent Yield?

Tax Equivalent Yield is the pretax yield that a taxable bond needs to possess for its yield to be equal to that of a tax-free municipal bond is calculated using Tax Equivalent Yield = Tax Free Yield/(1-Tax Rate). To calculate Tax Equivalent Yield, you need Tax Free Yield (TFY) & Tax Rate (TR). With our tool, you need to enter the respective value for Tax Free Yield & Tax Rate and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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