# How To Calculate After Tax Nominal Interest Rate

After-tax nominal interest rate is the rate of interest earned on an investment after taxes have been deducted. To calculate the after-tax nominal interest rate you will need to know the marginal tax rate and the investment’s pretax yield.

The after-tax nominal interest rate is calculated by subtracting the marginal tax rate from the pretax yield. For example if an investment has a pretax yield of 10% and the marginal tax rate is 30% the after-tax nominal interest rate would be 7%.

To calculate the after-tax real interest rate you will need to know the inflation rate. The after-tax real interest rate is calculated by subtracting the inflation rate from the after-tax nominal interest rate. For example if the after-tax nominal interest rate is 7% and the inflation rate is 3% the after-tax real interest rate would be 4%.

The after-tax nominal interest rate can be a useful tool for comparing the relative returns of different investments. However it is important to remember that the after-tax real interest rate is the more accurate measure of an investment’s true return.

## How do you calculate the after tax nominal interest rate?

The after tax nominal interest rate is calculated by subtracting the tax rate from the interest rate.

## What is the after tax nominal interest rate if the interest rate is 10% and the tax rate is 30%?

The after tax nominal interest rate would be 7%.