CD Calculator
Estimate what a certificate of deposit will earn, and compare up to three offers side by side.
Results
| Offer | Final balance | Interest | After tax | Per month |
|---|
Offer 1 year by year
| Year | Interest earned | Balance |
|---|
Quick Answer
A CD's final balance equals your deposit multiplied by (1 + APY) raised to the term in years. For example, $10,000 in a 12-month CD at 4.50% APY grows to $10,450, earning $450 in interest.
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Table of Contents
- CD Calculator
- Quick Answer
- Related Calculators
- How This CD Calculator Works
- How to Use the CD Calculator
- Core Formulas
- Worked Example
- Real-Life Examples
- CD vs High-Yield Savings Account
- Interest Earned on $10,000
- Things to Check Before You Choose
- Common Mistakes to Avoid
- Frequently Asked Questions
- References & Sources
How This CD Calculator Works
A certificate of deposit (CD) is a savings account that pays a set rate for a set term. This calculator grows your deposit by each offer's APY over its term, then shows the final balance and interest.
You can compare up to three offers at once. The best highlighted row has the highest APY. A longer CD can show more total interest, so the per-month column helps you compare terms of different lengths.
Quick explanation: Final balance = deposit × (1 + APY) ^ (months ÷ 12).
- APY: the yearly return, including compounding.
- Term: how long the money stays in the CD, in months.
- Tax rate: optional, used to estimate interest after tax.
How to Use the CD Calculator
- Enter the amount you plan to deposit.
- Enter the APY and term in months for up to three CD offers. Leave an offer's APY empty to skip it.
- Optionally, enter your tax rate to estimate interest after tax.
- Press Calculate to see the final balance, interest and interest per month for each offer.
- Check the year-by-year table to see how Offer 1 grows over its term.
Core Formulas
- Final balance: FV = P × (1 + APY) ^ (m ÷ 12)
- Interest: I = FV − P
- After-tax interest: I × (1 − tax rate)
P is your deposit, APY is written as a decimal, and m is the term in months. Because APY already includes compounding, you do not need to enter how often the bank compounds.
Worked Example
You deposit $10,000 for 24 months at 4.25% APY.
- Final balance = 10,000 × 1.0425 ^ 2 = $10,868.06
- Interest = $868.06
- Interest per month = about $36.17
Real-Life Examples
- Building a CD ladder: split $15,000 into three $5,000 CDs: 12 months at 4.50%, 24 months at 4.25% and 36 months at 4.00%. They earn about $225.00, $434.03, $624.32, and one CD matures every year.
- Short or long term: $25,000 for 6 months at 4.60% earns about $568.54. Locking it in for 5 years at 4.00% earns about $5,416.32, but you cannot use the money without a penalty.
- Cost of an early withdrawal: if a bank charges 3 months of interest, closing a $10,000 CD at 4.50% APY early costs about $110.65.
CD vs High-Yield Savings Account
- Rate: a CD rate is fixed for the term. A savings account rate can change at any time.
- Access: savings money can be taken out when you need it. A CD usually charges a penalty for early withdrawal.
- Best use: a CD suits money you will not need until a set date. Savings suits an emergency fund.
- Safety: both are usually insured by the FDIC or NCUA, up to $250,000 per depositor, per insured bank, for each ownership category.
Interest Earned on $10,000
Interest before tax, with no withdrawals.
| APY | 6 months | 1 year | 2 years | 5 years |
|---|---|---|---|---|
| 3.00% | $148.89 | $300.00 | $609.00 | $1,592.74 |
| 3.50% | $173.49 | $350.00 | $712.25 | $1,876.86 |
| 4.00% | $198.04 | $400.00 | $816.00 | $2,166.53 |
| 4.50% | $222.52 | $450.00 | $920.25 | $2,461.82 |
| 5.00% | $246.95 | $500.00 | $1,025.00 | $2,762.82 |
Things to Check Before You Choose
- Early withdrawal penalty: taking money out early can cost part of the interest. Check the terms first.
- Automatic renewal: many CDs renew at maturity unless you act during the grace period.
- Deposit insurance: check that the bank or credit union is insured, and stay within the limits.
- Inflation: interest may buy less in the future. Try our Inflation Calculator.
Common Mistakes to Avoid
- Comparing interest rates instead of APY. APY includes compounding, so it is the fair way to compare.
- Letting a CD renew automatically. The new rate may be lower. Mark the maturity date and compare offers during the grace period.
- Locking up your emergency fund. Keep money you may need soon somewhere you can reach it.
- Ignoring the penalty. An early withdrawal can wipe out months of interest.
- Going over insurance limits. Spread large deposits across banks or ownership categories.
Frequently Asked Questions
CD interest comes from your deposit, rate and term. With APY, the final balance is the deposit multiplied by (1 + APY) raised to the term in years.
The interest rate is the stated rate before compounding. APY includes compounding, so it shows the real yearly return and is better for comparing offers.
At 4.50% APY for 12 months, $10,000 earns $450. Enter your own rate and term above to see your result.
No. A longer CD can earn more in total, but your money is locked in for longer. Compare the APY, the term and any early withdrawal penalty.
In the US, CD interest is generally taxable in the year it is earned. Enter a tax rate above for an estimate, and check your own situation with a tax professional.
It means splitting your money across CDs with different terms, so one matures at regular intervals. You keep some access while earning longer-term rates.
You usually get a short grace period to withdraw or move the money. If you do nothing, many CDs renew for the same term at the current rate.
CDs at FDIC-insured banks and NCUA-insured credit unions are covered up to $250,000 per depositor, per institution, for each ownership category.
References & Sources
| Source | Used For | Link |
|---|---|---|
| Consumer Financial Protection Bureau, Regulation DD (Truth in Savings) | Definition of annual percentage yield. | https://www.consumerfinance.gov/rules-policy/regulations/1030/ |
| FDIC, Deposit insurance | Insurance limits for deposits. | https://www.fdic.gov/resources/deposit-insurance |
| U.S. SEC, Investor.gov compound interest guide | How money grows with compounding. | https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator |