🏦 CD Calculator
Estimate the maturity value and interest earned on a certificate of deposit.
CD Details
Your CD at Maturity
Assumes the CD is held to maturity with no withdrawals. Actual bank terms, minimum deposits, and early withdrawal penalties vary by institution.
How the CD Calculator Works
A certificate of deposit grows through compound interest: the bank pays interest on your deposit at the compounding frequency you choose, and that interest is added to the balance so future interest is earned on the new, larger total. More frequent compounding (daily vs. annually) produces a slightly higher payout for the same stated rate.
Formula
Total Periods (n) = Term (years) × Compounding Periods per Year
Maturity Value = Deposit × (1 + r)ⁿ
Worked Example
A $10,000 deposit in a 12-month CD at 4.5% APY, compounded daily, grows to approximately $10,460 at maturity — about $460 in interest earned over the term, with no further action required until the CD matures.
How to Use This CD Calculator
- Enter your initial deposit amount.
- Enter the annual interest rate (APY) your bank is offering.
- Enter the CD's term length and choose months or years.
- Select the compounding frequency listed in the CD's terms (most banks compound daily or monthly).
Frequently Asked Questions
What is a CD?
A certificate of deposit (CD) is a savings product that pays a fixed interest rate in exchange for leaving your money deposited for a set term, such as 6 months, 1 year, or 5 years.
What happens if I withdraw before the CD matures?
Most CDs charge an early withdrawal penalty, often equal to a number of months' interest, if you take money out before the term ends. This calculator assumes you hold the CD to maturity.
What is APY and how is it different from the interest rate?
APY (Annual Percentage Yield) reflects the effect of compounding over a year, so it is typically slightly higher than the stated annual interest rate. This calculator lets you choose the compounding frequency to see how it affects your return.