The second loan has an after-tax cost of 0.06 * (1 - 0.3), or 4.2%. Clearly, the after-tax calculation does not affect the original decision to pursue the first loan, as it is still the cheapest ...

For example, you may have a local tax or an additional tax on specific items. Convert the percentage to a decimal -- so 7% becomes 0.07. Finally, divide the gross price by the sales tax rate plus ...

To find the percentage of yield kept after taxes, subtract the total tax rate from 1. Using our previous example, subtracting 0.30 from 1 leaves 0.70. Step 4: Apply the After-Tax Return Formula ...