Interest Earned After Tax Calculator
Calculate the after-tax value of interest earned on Australian savings or term deposits once your marginal tax rate is applied.
Your results
Calculation breakdown
- Tax on interest
- Tax = interest earned × marginal tax rate
- After-tax interest
- After-tax interest = interest earned − tax payable
Worked example
On $1,000 of interest with a 32% combined marginal rate, tax payable is $320, leaving $680 after tax — an effective retention rate of 68%.
Assumptions
- Interest is taxed as ordinary assessable income at your marginal rate.
- Excludes any offsets or deductions that might otherwise apply to your overall tax position.
How this calculator works
Interest earned on Australian savings accounts and term deposits is assessable income taxed at your marginal rate. Enter your interest earned and marginal tax rate to see how much you keep after tax, and your real after-tax rate of return.
Rates sourced from the Australian Taxation Office for the 2026–27 financial year. Last reviewed 01/07/2026.
Frequently asked questions
Do I pay tax on interest I haven't withdrawn?
Yes, bank interest is taxed when it is credited to your account, regardless of whether you withdraw it.
What marginal rate should I use?
Use your combined marginal tax rate including the Medicare levy; the Marginal Tax Rate calculator can help you find this.
Does this include the Medicare levy?
Only if you include it in the marginal rate you enter; enter your combined rate for an accurate after-tax figure.
Rates and thresholds are configured for the 2026–27 Australian financial year and should be reviewed when government settings change.