What is the "after-tax rate of return"?

September 30, 2008

Date:   14 Aug 2007
From:   Steve

What is the "after-tax rate of return"? Is there a formula to compute it?


Date:   05 Sep 2007

Hello Steve,

The "after-tax rate of return" is the rate of return after income taxes are paid.

A rough formula would be (r – t)/(y X i) or the return (income from the investment) – taxes paid with respect to the return divided by the years or period of investment and the amount of the initial investment.

Good luck!
Mike Gray

For answers to new questions, subscribe to our newsletter, Michael Gray, CPA's Tax & Business Insight by filling out the form below.

Home    Newsletter Archive    Introducing Michael Gray, CPA    Articles    Tax FAQ   Need Help?    Other Links

Michael Gray, CPA
2190 Stokes St. Ste. 102
San Jose, CA 95128
(408) 918-3162
FAX: (408) 998-2766
Hours: 8am - 5pm PDT Monday - Friday

Find us on Facebook
Follow me on Twitter
Connect on LinkedIn
Connect on Google+
Our Blog

Sign up for our free monthly newsletter,
Tax & Business Insight,
for the latest tax news!

subscribe html
unsubscribe text only

We respect your email privacy!