Welcome to YieldAfterTax, the ultimate tax drag calculator built to show you the real, net return on your cash savings.
Our mission
Banks advertise savings accounts with big, bold annual percentage yields. What they rarely mention is that interest is taxed as ordinary income the year you earn it — so the return that reaches your pocket is always smaller. YieldAfterTax exists to close that information gap. We turn an abstract idea — "tax drag" — into a number and a picture you can act on, for free, in a few seconds.
How our calculator works
We believe a financial tool should never be a black box. That's why the full method is printed right on the calculator page. In short, we take the standard compound-interest formula and run it twice: once at your account's advertised rate (the "gross" line) and once at an after-tax rate, reduced by your combined federal and state marginal tax rate (the "net" line). The distance between those two curves is your tax drag — and it includes not just the tax you pay, but the future growth those tax dollars would have earned. Every calculation happens locally in your browser.
Editorial standards
- Transparent math. Our formulas and assumptions are published openly so anyone can check them.
- Clearly-labeled estimates. We use marginal-rate approximations and say so.
- Independent. We are not a bank and do not sell savings accounts. Advertising keeps the tool free, but ads never change our results.
- Sourced. Where we cite tax rules, we point to authoritative references such as the IRS.
- Kept current. We review figures against each tax year and note when content was last updated.
Who's behind YieldAfterTax
YieldAfterTax is an independent personal-finance project built by Younus Mahr, a personal finance enthusiast dedicated to creating clear, honest, and transparent money tools. We believe that savers deserve to know the real return on their hard-earned cash, without the hidden surprise of annual tax drag. This tool was created to help people visualize the real compounding impact of taxes on their savings, and make smarter decisions about where to keep their cash.
Important reminder
YieldAfterTax provides education, not advice. Our tools can't see your whole financial picture, and tax law changes. Before you act, confirm the numbers with a qualified professional. Please read our full disclaimer.