DayCents

Savings & Banking

CD Calculator

Certificates of deposit trade access for a guaranteed rate. Enter your deposit, the rate, the term, and how the bank compounds to see the exact value at maturity, the interest you'll earn, and the true APY — the number that makes any two CDs comparable.

Value at maturity

$10,460.25

Interest earned
$460.25
Effective APY
4.6%

Rate + compounding combined — the number to compare CDs with.

How this calculator works

Value at maturity = principal × (1 + rate/m)^(m × years), where m is the compounding frequency. The effective APY, (1 + rate/m)^m − 1, is computed so you can compare offers quoted with different compounding.

Assumes interest stays in the CD until maturity and no early withdrawal. Rates are per-bank offers — the same term varies widely, so shop with the APY.

Try an example

Frequently asked questions

What is a CD and how does it work?

A certificate of deposit locks your money at a bank for a fixed term (3 months to 5+ years) in exchange for a guaranteed rate, FDIC-insured up to $250,000. Withdraw early and you typically forfeit several months of interest — the penalty is the price of the guarantee.

CD or high-yield savings account?

A CD locks today's rate — winning if rates fall, losing flexibility if they rise or you need the cash. Savings accounts float with the market and stay accessible. A common play: savings for the emergency fund, CDs for known future expenses with a date.

What is a CD ladder?

Splitting your money across staggered maturities — e.g., five equal CDs maturing at 1, 2, 3, 4, and 5 years, each renewed into a new 5-year at maturity. You capture longer-term rates while a rung matures every year, solving the lock-up problem elegantly.

Is CD interest taxable?

Yes — as ordinary income in the year it's credited, even if you don't withdraw it (the bank sends a 1099-INT). Inside an IRA the tax is deferred. Factor your marginal rate in when comparing a CD against tax-advantaged alternatives.

Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.