CD Calculator
Calculate the maturity value, interest earned, and APY of a certificate of deposit.
Your one-time CD deposit
Check your bank — top 1-yr CDs ≈ 4.5–5%
Break the CD early? — optional, see the penalty
0 = hold to maturity
Typical: 3 mo (short CDs) – 12 mo (long)
Value at Maturity
$10,460.25
$10,000 deposit after 1 year
Interest Earned
$460.25
Total over the full term
Effective APY
4.60%
Annual yield after compounding
At 4.5%, this CD earns $410 more than the same money in a typical 0.5% savings account — the trade-off for locking it up for 1 year.
CDs are FDIC-insured up to $250,000 per depositor, per bank — a key reason to choose one over a higher-yield but uninsured alternative. CD interest is taxed as ordinary income in the year it is earned — not at the lower capital-gains rate, and even if you don't withdraw it. APY is the effective yearly yield after compounding; banks advertise APY, so compare CDs on that figure. For a deposit you add to over time, use the Savings Calculator.
How to use this calculator
- Enter your deposit amount — the lump sum you are putting into the CD.
- Enter the interest rate — the CD’s stated annual rate.
- Choose the term length — common CD terms from 3 months to 5 years.
- Choose the compounding frequency — match how the CD compounds (often monthly or daily).
The value at maturity, total interest earned and effective APY update instantly.
How it works
A certificate of deposit is one of the simplest savings products: you deposit a fixed amount, leave it untouched for a fixed term, and the bank pays a fixed rate. There are no monthly contributions and no market risk.
The maturity value is the standard compound-interest formula:
A = P × (1 + r/n)^(n·t)
where P is your deposit, r the annual rate, n the compounding periods per year, and t the term in years. The APY is (1 + r/n)^n − 1 — the effective yearly yield after compounding, which is always at least the nominal rate and slightly higher when compounding is more frequent than annual.
Things to know
A CD trades flexibility for a guaranteed rate. The return is certain if you hold to maturity, but withdrawing early typically forfeits some interest. Compare CDs by APY, not the headline rate, since APY already accounts for compounding and is the figure banks are required to disclose.
Frequently Asked Questions
How does this CD calculator work out my maturity value? ▾
It takes your single deposit and compounds it at the CD's rate for the full term, using the formula A = P(1 + r/n)^(n·t). A certificate of deposit has no further contributions, so the result is simply your deposit plus all the interest it earns until maturity.
What is APY and why does it differ from the rate? ▾
APY (annual percentage yield) is the effective yearly return once compounding is included. A CD compounding monthly at a 5% nominal rate actually yields about 5.12% APY, because interest earns its own interest during the year. Banks advertise CDs by APY, so APY is the figure to compare them on — this calculator shows it alongside the maturity value.
What happens if I withdraw from a CD early? ▾
Most CDs charge an early-withdrawal penalty — typically 3 months of interest on shorter CDs and up to 12 months on longer ones — if you take the money out before the term ends. This calculator can model that: enter the month you might withdraw and the penalty in months of interest, and it shows your actual net payout after the penalty and how much you'd give up versus holding to maturity.
What is a CD ladder? ▾
A CD ladder splits one deposit across several CDs with staggered terms — for example five equal slices in 1-, 2-, 3-, 4- and 5-year CDs. As each rung matures it frees up cash, giving you periodic access to your money without breaking a CD early, while the longer rungs still capture higher long-term rates. Switch to the CD Ladder mode to see the blended APY and a maturity schedule.
Is CD interest taxable? ▾
Yes. CD interest is taxed as ordinary income — at your regular income-tax rate, not the lower long-term capital-gains rate that applies to stocks. It is taxed in the year it is earned, even on a multi-year CD where you don't receive the money until maturity: the bank reports the accrued interest each year. This is a real difference to weigh against investing.
Are CDs insured? ▾
Yes. CDs at FDIC-member banks are insured up to $250,000 per depositor, per bank — and CDs at NCUA-insured credit unions get the same coverage. That federal insurance is a core reason to choose a CD over a higher-yielding but uninsured alternative: the return is modest, but the principal is genuinely safe.
Does compounding frequency affect a CD's return? ▾
Yes, slightly. A CD that compounds daily yields a little more than one compounding annually at the same nominal rate. The effect is small but real — it is why APY, which already accounts for compounding, is the fair way to compare two CDs.
When should I use the Savings Calculator instead? ▾
Use the Savings Calculator when you will add money over time — it handles an initial deposit plus regular monthly deposits. A CD is a one-time, fixed-term deposit with no contributions, which is what this calculator models.