CD Calculator
A certificate of deposit (CD) locks in a fixed rate for a set term in exchange for leaving your money untouched. Enter the deposit, APY, and term to see exactly what it will be worth at maturity and how much interest you’ll earn.
How this calculator works
Banks advertise CDs by their APY (annual percentage yield), which already includes compounding. To project growth at the chosen frequency, we first recover the nominal rate from the APY:
nominal = n · ((1 + APY)^(1/n) − 1)
then compound it over the term, where n is the number of compounding periods per year and t is the term in years:
maturity = deposit · (1 + nominal ÷ n)^(n · t)
Interest earned is simply the maturity value minus your deposit.
A note on CDs
CD returns are fixed and predictable, but withdrawing early usually triggers a penalty (often several months of interest). They also may not keep pace with inflation. This calculator shows the contractual growth, not after-tax or inflation-adjusted value.
Learn more
- What's a Good Interest Rate? (For Loans and Savings) — "Good" depends on whether you're borrowing or saving, and on benchmarks like the Fed rate and inflation. How to judge a rate you're offered — APR vs APY.
Frequently asked questions
- Is the CD rate APY or APR?
- Banks quote CDs in APY, which already accounts for compounding. This calculator treats your input as APY and reconstructs the underlying rate to project the exact maturity value.
- What happens if I withdraw early?
- Most CDs charge an early-withdrawal penalty, commonly a set number of months of interest. This tool assumes you hold the CD to maturity, so it doesn't subtract any penalty.
- Are CD earnings taxed?
- Yes — CD interest is generally taxable as ordinary income in the year it's earned, even before maturity for multi-year CDs. The figures here are pre-tax.