After-Tax XIRR Calculator
Computes the true IRR of your bond investment on actual calendar dates, after applying income tax to coupon payments and LTCG/STCG on the capital gain at maturity. More accurate than a simple post-tax yield approximation.
How this is computed
- Each coupon payment is reduced by income tax at your slab rate.
- At maturity, the capital gain (face value − clean purchase price) is taxed at 12.5% LTCG or your slab rate (STCG), depending on your holding period.
- The purchase outflow includes accrued interest (dirty price).
- XIRR solves for the internal rate of return over actual calendar days — no simplifying assumptions about payment timing. This is the standard definition used by Excel's XIRR function.
- For tax-free bonds, coupon income is exempt; only capital gain tax applies.
Not tax advice. Consult a tax professional for your specific situation. Budget rules change annually.