Tax Shield – Excel Template

Ivan Kitov
Ivan Kitov

Tax shield is the allowable deduction on taxable income that could reduce the government taxes. To calculate it, you simply multiply the sum of tax-deductible expenses by the company’s tax rate. That’s a way for a firm to estimate the amount they can save on their income tax payments by adding various deductible expenses. In this template, you can calculate the metric for a company of your choice in just a few clicks.

This open-access Excel template is a useful tool for accountants, financial analysts, corporate finance practitioners, finance managers, and anyone preparing a corporate presentation.

Tax Shield is among the topics included in the Corporate Finance module of the CFA Level 1 Curriculum. Gain valuable insights into the subject with our Corporate Finance course.

You can also explore other related templates such as—Operating Breakeven Quantity of Sales, Degree of Financial Leverage, and Degree of Operating Leverage.