CD Calculator
See how much a certificate of deposit earns by the time it matures.
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How much will my CD earn?
A certificate of deposit pays a fixed rate for a fixed term, so the math is predictable: your deposit grows by the APY each year until the CD matures. Put $10,000 in a 12-month CD at 4.25% APY and you earn $425.00 in interest, so the bank pays back $10,425.00 at maturity. Change the term to 5 years at the same APY and the balance grows to about $12,313, because each year's interest also earns interest.
The table under the results shows the balance month by month for terms up to two years, and year by year for longer CDs, so you can see how the interest builds over the term.
APY vs interest rate
APY (annual percentage yield) is the yearly growth after compounding. The interest rate, sometimes shown as APR, is the rate before compounding. A 4.25% APY is the same as about 4.16% compounded daily. The calculator converts between the two, so you can compare a CD quoted one way with another quoted the other way.
If you are spreading money across several CDs with different maturity dates, the CD ladder calculator shows the blended yield of the whole ladder.
Frequently Asked Questions
Should I enter the APY or the interest rate?
Enter whichever number the bank shows. Banks advertise CDs by APY, which already includes compounding, so pick APY and the compounding setting is ignored. If the bank quotes an interest rate instead, pick Interest rate and set how often it compounds; the calculator then works out the APY for you.
Does daily or monthly compounding change what I earn?
Only when you enter an interest rate. At 4.25% compounded daily you earn a little more than at 4.25% compounded annually, because interest starts earning interest sooner. When you enter an APY, that effect is already counted, so every compounding setting gives the same result.
Is CD interest taxed?
In the US, CD interest is generally taxed as ordinary income for the year it is credited to your account, even if it stays in the CD until maturity. The figures here are before tax, so set aside part of the interest if you are in a higher bracket.
What if I cash out the CD early?
Most banks charge an early withdrawal penalty, often a set number of months of interest, and it can eat into your deposit on a short CD. This calculator assumes you hold the CD to maturity, so check your bank's penalty before you open one you might need to break.
Related tools
Split your savings across several CD terms and see the blended yield.