Finance Tools

Before vs After Tax Investment Return Calculator

Compare before-tax vs after-tax investment returns to estimate how taxes reduce your return and take-home profit.

Before vs After Tax Investment Return Calculator

Compare before-tax vs after-tax investment results to understand how taxes reduce your return. This calculator estimates profit, taxes paid, after-tax return, and the difference between pre-tax and after-tax outcomes.

The starting amount you invest (or your portfolio value).
This is your estimated annual return before taxes (simplified).
Use an estimated blended tax rate (dividends + realized gains + local rules).

Results

Before-tax:

Before-Tax Profit: $8,000

Before-Tax Return: 8.00%

After-tax:

Estimated Tax Paid: $2,000

After-Tax Profit: $6,000

After-Tax Return: 6.00%

Return Reduction (before-tax − after-tax): 2.00%

This is a simplified estimate for planning. Real-world taxes depend on holding periods, account type, and local rules.

How to use

  1. Enter your investment amount.
  2. Enter your expected before-tax return (%).
  3. Enter an effective tax rate on investment returns (%).
  4. Compare before-tax profit vs after-tax profit and return.

FAQ

What is “after-tax return”?

After-tax return is the return you keep after taxes. A simple way to think about it is: after-tax profit = before-tax profit − taxes.

What tax rate should I use?

Use an estimated effective tax rate that matches your situation. If you have both dividends and capital gains, a blended/effective rate can be a practical approximation.

Does this include multi-year compounding?

No—this version shows a one-year estimate. Multi-year compounding can be added as a separate tool (and is often a different SERP intent).

How to use this before vs after tax investment return calculator

  1. Enter your investment amount.
  2. Enter your expected before-tax return (%).
  3. Enter your effective tax rate on investment returns (%).
  4. Review after-tax return, taxes paid, and the difference between before-tax and after-tax outcomes.

Example

If you invest $100,000, earn 8% before tax, and pay an effective tax rate of 25%, after-tax return is 6% and taxes reduce profit by $2,000.

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