Bond Calculator

The bond calculator computes the taxable equivalent of a tax-free yield. Simply enter a tax-free yield and your tax bracket in the boxes below to calculate a taxable equivalent yield.

This calculator will estimate the tax-equivalent yield (TEY) for a municipal bond. Income generated from municipal bond coupon payments are not subject to federal income tax. In addition, if the bond was issued in your state of residence, you can also avoid state income taxes. Use this calculator to determine the yield required by a fully taxable bond to earn the same after-tax income as a municipal bond.



Calculate your Taxable Equivalent Yield: