Market Discount Accretion Calculator
Accrete a secondary-market discount to par — total accretion, per-year amounts and the de-minimis tax threshold check.
Formula
US buyers of discounted munis/corporates face the de-minimis trap: discounts deeper than 0.25%×years convert what feels like capital gain into ordinary income, materially cutting after-tax yield in high brackets. The check is built in.
US federal tax rule shown — not tax advice. Not financial advice — for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
Need market discount accretion calculator results fast? Analysts, founders, traders and finance professionals use the Market Discount Accretion Calculator to skip the spreadsheet and get a defensible answer in one step — free, private and instant.
About Market Discount Accretion Calculator
Accrete a secondary-market discount to par — total accretion, per-year amounts and the de-minimis tax threshold check. US buyers of discounted munis/corporates face the de-minimis trap: discounts deeper than 0.25%×years convert what feels like capital gain into ordinary income, materially cutting after-tax yield in high brackets. The check is built in. The governing relationship is de minimis: P ≥ F × (1 − 0.25% × years). The Market Discount Accretion Calculator computes entirely in your browser — free, private (your figures never leave your device) and instant, recalculating live as you change any input.
How to use Market Discount Accretion Calculator
- 1Enter Face value (currency), Purchase price (currency), Years to maturity into the Market Discount Accretion Calculator.
- 2The result is computed automatically using de minimis: P ≥ F × (1 − 0.25% × years) — there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use Market Discount Accretion Calculator?
- ✓Computes market discount accretion calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter stay private
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
What is the formula behind the Market Discount Accretion Calculator?+
Market Discount Accretion Calculator uses de minimis: P ≥ F × (1 − 0.25% × years). US buyers of discounted munis/corporates face the de-minimis trap: discounts deeper than 0. The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the Market Discount Accretion Calculator need?+
Enter Face value (currency), Purchase price (currency), Years to maturity and the result updates immediately — there is no button to press. Change any value to model a different scenario in real time.
Is the Market Discount Accretion Calculator free, and is my data private?+
Yes — it is completely free with no sign-up or usage limit, and it runs entirely in your browser, so the numbers you enter are never uploaded or stored on any server. US federal tax rule shown — not tax advice. It is for informational and analytical use, not financial advice.
What should I watch out for when using the Market Discount Accretion Calculator?+
25%×years convert what feels like capital gain into ordinary income, materially cutting after-tax yield in high brackets. The check is built in.
What is the Market Discount Accretion Calculator based on?+
The method follows authoritative sources: IRC §1278; MSRB de-minimis investor guidance. The formula and references are shown on the page so you can verify and cite the result.
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