The decision on whether or not to opt for a regular investment avenue rather than a tax-free one is dependent on the returns offered by two avenues and your marginal tax bracket.
Taxed Avenue
Tax-Free Avenue
Investment amount ( )
Tenure of Investment (years)
Interest earned (% p.a)
Compounded every
Your tax bracket (%)
avenue is better
The effective rate of interest for Taxed avenue is
The effective rate of interest for Non-Taxedavenue is