After-tax Cost of Debt Calculator – Fixed Income Tools – Multi-Tools

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.

Debt Details
The nominal interest rate on the debt
Your marginal corporate tax rate
Total amount of debt
Length of the debt term
Advanced Options

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How to Use
  1. Enter the interest rate on your debt
  2. Input your corporate tax rate
  3. Specify debt amount and term
  4. Select payment and compounding frequencies
  5. 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

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