Financial Toolbox

taxedrr

After-tax rate of return

Syntax

• Return = taxedrr(PreTaxReturn, TaxRate)
  

Arguments

PreTaxReturn	Nominal rate of return. Enter as a decimal fraction.
TaxRate	Tax rate. Enter as a decimal fraction.

Description

Return = taxedrr(PreTaxReturn, TaxRate) calculates the after-tax rate of return.

Examples

An investment has a 12% nominal rate of return and is taxed at a 30% rate. The after-tax rate of return is

• Return = taxedrr(0.12, 0.30)
  
  Return =
           0.0840
  

or 8.4%

See Also

effrr, irr, mirr, nomrr, xirr

second

tbl2bond