An after-tax return may be expressed nominally or as a ratio and can be used to calculate the pretax rate of return. Key Takeaways An after-tax return is the profit realized on an investment after ...

Investors use rate of return to understand the earnings or losses on an investment in a specified period of time. Learn more about how it’s calculated.

The Formula for the Nominal Rate of Return Is ... The after-tax rate of return of an investment takes the effect of taxation on the investment's returns into account.

Tips to Improve After-Tax Real Rate of Return. If you want to make the most out of your real rate of return, it’s important to pay attention to the factors that affect it. Here are some simple tips on ...

If the nominal rate is 20% and the applicable tax rate is 15%, the after-tax return is 17%. The calculation is 0.20 x (1 - 0.15) . You can then adjust the 17% rate for inflation using the real ...

For example, inflation in March 2022 reached 8.5%, when nominal rates on Treasury bonds were about 2.5%, which means those bonds yielded a real rate of return of -6.0% if inflation remained steady ...