CD Calculator
Calculate the maturity value and interest earned on a certificate of deposit with any compounding frequency.
Maturity Value
—
Interest Earned
—
Effective APY
—
What is CD Calculator?
A CD (Certificate of Deposit) calculator computes the maturity value and interest earned when you deposit a fixed amount for a set term at a guaranteed interest rate. CDs are low-risk savings instruments offered by banks and credit unions that typically pay higher rates than regular savings accounts in exchange for locking in your money for a fixed period.
How to use
- 1 Enter your initial deposit amount.
- 2 Input the annual interest rate offered by the bank.
- 3 Select the compounding frequency (daily, monthly, quarterly, etc.).
- 4 Enter the CD term in years and months.
- 5 The calculator shows your ending balance and total interest earned.
Formula
Example calculation
A $10,000 CD at 5% APY compounded monthly for 2 years grows to $11,049.41, earning $1,049.41 in interest.
Frequently asked questions
What is APY vs APR on a CD?
APY (Annual Percentage Yield) accounts for compounding and represents the actual annual return. APR is the stated rate before compounding. For CDs, banks often advertise APY since it's the higher number.
What happens if I withdraw early?
Early withdrawal typically incurs a penalty, often 3–6 months of interest depending on the CD term. Some no-penalty CDs exist but usually offer lower rates.
Are CDs FDIC insured?
Yes. CDs at FDIC-insured banks are covered up to $250,000 per depositor, per institution — making them one of the safest savings vehicles available.
Should I ladder my CDs?
CD laddering — splitting your deposit across CDs with different maturity dates — provides periodic liquidity while still earning higher rates than savings accounts.
What is a brokered CD?
Brokered CDs are sold through brokerage firms rather than directly from banks. They can offer competitive rates but may have different liquidity and insurance characteristics.