After-Tax Return Calculator
Find out what an investment return is really worth after taxes take their cut — and after inflation erodes what is left.
How it works
After-tax = return × (1 − tax rate) · After-tax real = (1 + after-tax) ÷ (1 + inflation) − 1
The headline return on an investment is rarely what you keep. Tax on interest, dividends and realised gains takes a slice, and inflation quietly erodes the purchasing power of what remains. This calculator applies the tax first, then discounts by inflation using the Fisher relationship, so you can see the return that actually adds to your wealth — often far lower than the number quoted.
Worked example
An 8% pre-tax return taxed at 25% leaves 8 × (1 − 0.25) = 6% after tax. With 3% inflation, the real after-tax return is (1.06 ÷ 1.03) − 1 ≈ 2.9% — barely more than a third of the original 8%.
Frequently asked questions
Which tax rate should I enter?
Use the rate that applies to this investment income: your marginal rate for interest and short-term gains, or the long-term capital-gains or qualified-dividend rate for longer holdings. Tax-advantaged accounts may be effectively 0%.
Why subtract inflation as well?
Tax reduces the dollars you keep; inflation reduces what those dollars can buy. Only the after-tax, after-inflation return represents a genuine increase in your purchasing power.
Does this account for tax-deferred accounts?
Not automatically. In a tax-deferred or tax-free account you might enter a 0% tax rate. The point of the tool is to compare taxable and sheltered returns on a like-for-like basis.
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Educational estimate, not investment advice. Past returns do not predict future results.