🏦 CD Calculator
See what a certificate of deposit (CD) is worth at maturity, how much interest it earns, and its APY.
How the CD Calculator Works
A certificate of deposit (CD) pays a fixed rate for a fixed term, such as six months or five years. The final balance depends on the deposit, the rate, how often interest compounds, and the term. Banks usually advertise CDs by their APY, which already includes compounding; if you know the APY, choose that option and the calculator grows your deposit directly at that yield.
If you only know the stated (nominal) rate, choose the compounding frequency instead. The result assumes interest stays in the CD until maturity and no withdrawals are made. Withdrawing early usually triggers a penalty, often a set number of months of interest, which this calculator does not include.
Formula
With a nominal rate: Final balance = P × (1 + r ÷ n)^(n × t) With an APY: Final balance = P × (1 + APY)^t Total interest = Final balance − P P = deposit, r = annual rate, n = compounding periods per year, t = term in years
How to Use It
- Enter the deposit amount.
- Enter the rate and choose whether it is an APY or a nominal rate.
- Enter the term in months.
- Read the balance at maturity and total interest.
Frequently Asked Questions
How is CD interest calculated?
Interest compounds at the frequency the bank uses, commonly daily or monthly. With an APY, the balance at maturity is deposit × (1 + APY)^years.
Should I enter the APY or the interest rate?
Either works. If the bank quotes an APY, choose the APY option; if it quotes a nominal rate with a compounding schedule, choose that option and select the schedule.
What happens if I withdraw early?
Most CDs charge an early withdrawal penalty, often several months of interest. The exact penalty is in the account terms; this calculator assumes the CD is held to maturity.
Is CD interest taxable?
In many countries, including the United States, CD interest is generally taxable as ordinary income in the year it is earned, even if it stays in the account.
Related Glossary Terms
Related Calculators
- 📈 APY Calculator — Convert an interest rate to APY for any compounding frequency, and see a year’s interest.
- 📈 Compound Interest Calculator — See how your money grows with compound interest and regular monthly contributions.
- 🎯 Savings Goal Calculator — Find out how much to save each month to hit your target.
- 🎈 Inflation Calculator — Future cost and buying power of money for any inflation rate.
Formula and content last reviewed: September 2026. All calculations run in your browser — nothing you enter is sent to or stored on our servers.
Guide: understanding your result
- APY already includes compounding, so compare CDs by APY rather than by interest rate.
- Withdrawing before maturity usually triggers a penalty, often several months of interest.
- Deposits at FDIC-insured banks (NCUA-insured credit unions) are protected up to $250,000 per depositor, per institution, per ownership category.
Worked example
$10,000 in a 1-year CD at 4% compounded daily earns about $408.08. Interest is generally taxable in the year it is credited, even if the CD has not matured.
Interest earned on $10,000 (daily compounding)
| Term | At 3% | At 4% | At 5% |
|---|---|---|---|
| 0.5 years | $151.12 | $202.00 | $253.13 |
| 1 year | $304.53 | $408.08 | $512.67 |
| 2 years | $618.34 | $832.82 | $1,051.63 |
| 3 years | $941.70 | $1,274.89 | $1,618.22 |
| 5 years | $1,618.27 | $2,213.89 | $2,840.03 |
Before taxes. Illustrative rates only.
Common mistakes to avoid
- Letting a CD auto-renew at a lower rate without checking the grace period.
- Locking all savings into long terms and paying a penalty for an emergency withdrawal.
Official sources
Examples are calculated live from the same data the calculator uses and are for education only — they are not financial, tax or investment advice.
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See all →✔ Reviewed by GelirLab Editöryal Ekibi · Last reviewed: September 2026 · How we check our calculators