taxedrr

After-tax rate of return

Syntax

Return = taxedrr(PreTaxReturn,TaxRate)

Arguments

PreTaxReturn

Nominal rate of return. Enter as a decimal fraction.

TaxRate

Tax rate. Enter as a decimal fraction.

Description

Return = taxedrr(PreTaxReturn,TaxRate) calculates the after-tax rate of return.

Examples

collapse all

This example shows how to calculate the after-tax rate of return, given an investment that has a 12% nominal rate of return and is taxed at a 30% rate.

Return = taxedrr(0.12, 0.30)
Return = 0.0840

Introduced before R2006a