Treasury Ladder Tax Impact Calculator turns your assumptions into a practical planning estimate. Enter the investment amount, timing, yield, and applicable tax inputs to see the main result plus supporting figures that explain where it comes from. The tool is designed for comparing cash-flow choices and testing scenarios, not predicting future rates. Adjust one input at a time to see which assumption has the greatest effect on your plan.
The main result is the Treasury ladder’s annual after-tax income advantage or shortfall versus the taxable alternative.
The comparison assumes additive marginal rates and does not model deductions, phaseouts, capital gains, or account-specific treatment.
On $100,000, a 4.2% Treasury yield at 24% federal tax produces $3,192 net. A 4.6% taxable yield at combined 30% tax produces $3,220 net, so the Treasury trails by $28 annually.
No. It is a planning estimate based on the constant inputs you enter; actual yields, taxes, and cash flows can change.
Use a current quoted yield that matches the securities, maturities, and compounding basis you expect to use.
Interest is commonly taxed as ordinary income, so the marginal rate helps estimate the portion of interest retained after tax.
Yes when the calculation remains defined. A zero yield models principal-only cash flow, but break-even calculations that require positive income reject it.
No. Results are shown in nominal dollars unless inflation is explicitly included as an input, so purchasing power may differ.
| Input | Purpose |
|---|---|
| Investment amount | US dollars |
| Treasury yield | Percent |
| Comparable taxable yield | Percent |
| Federal tax rate | Percent |
| State/local tax rate | Percent |