Accessibility Menu

How to Calculate the Cost of Debt Pre-Tax

By Motley Fool StaffUpdated Apr 30, 2025 at 3:36 PM

Key Points

  • Examine company's annual bond interest.
  • Add pre-tax interest adjustments found in cash flow statements to get pre-tax figures.
  • Calculate pre-tax debt cost using company's effective tax rate for accuracy in evaluation.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.