Your After-Tax Rate of Return

Compare the return of a taxable and a tax-free investment.

Your Name
Taxable Investment Tax-free Investment
Pre-tax Rate of Return
Federal Marginal Tax Rate
State Marginal Tax Rate

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The purpose of this calculator is to illustrate what the return on your investment looks like if your investment is in a tax deferred investment account or if it's in a taxable investment account. The benefit of the deferred account is that you don't have to pay the tax today, it is deferred (put off) until the future. The theory behind this is that when you need the money you can withdraw and use the money when it will be taxed at a lower rate. This will allow you to have a larger base in which to grow your invested assets.

Written byFinPlan

FinPlan was founded back in the early 1990s as a software development company, where we created personal financial planning software. Our work there naturally led to the web and 4 different redesigns later, here we are.