After-tax Cost of Debt Calculator
Calculate the effective cost of debt financing after considering tax deductions. Analyze how tax benefits affect your true borrowing costs.
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How to Use
- Enter the interest rate on your debt
- Input your corporate tax rate
- Specify debt amount and term
- Select payment and compounding frequencies
- Click Calculate to view analysis
Formula:
After-tax Cost = Pre-tax Cost × (1 – Tax Rate)
Note:
- Tax shield reduces effective borrowing cost
- Higher tax rates increase tax shield value
- Consider payment frequency impact