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.

Formula shown below · Tested against worked examplesHow we verify

Deposit amount

Interest rate

Term

Compounding

Value at maturity

$10,460.25

Interest earned: $460.25
Effective APY: 4.6%

Compare scenariosTry three values of one input

Vary

CD Calculator results for three values of Deposit amount
Deposit amount
Value at maturity	$9,414.22	$10,460.25+$1,046.03	$11,506.27+$2,092.05
Interest earned	$414.22	$460.25+$46.03	$506.27+$92.05

Every other input stays at the value you set above — currently $10,000 for deposit amount. Differences are measured against the first column.

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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.

Formula

FV = P × (1 + r/m)^(m·t)

P: Deposit
r: Annual rate, as a decimal
m: Compounding periods per year
t: Term in years

The rate is locked for the term, unlike a savings account. Interest is taxable in the year earned even on a multi-year CD where you receive nothing until maturity.

What this assumes

The rate is fixed for the term and interest compounds at the frequency you enter.
Held to maturity — early withdrawal forfeits interest and is calculated separately.
Interest is taxable in the year earned, even on a multi-year CD where you receive nothing until maturity.

What changes this number

Term: Longer terms usually pay more, but only when the rate curve slopes that way — sometimes short terms pay more.
Rate environment: A CD is a bet that rates will not rise. That bet is cheap when rates are high and expensive when they are low.
Reinvestment: What you do at maturity matters as much as the rate you locked, and is not knowable in advance.

A worked example

Take the 1-year at 4.5%, daily compounding scenario. These figures are produced by the calculator above, not written alongside it, so they always match what the tool returns.

What you enter

Deposit amount: $10,000
Interest rate: 4.5%
Term: 12 months
Compounding: Daily (most common)

What it returns

Value at maturity: $10,460.25
Interest earned: $460.25
Effective APY: 4.6%

Sources

This calculator uses no external data — the result follows entirely from the formula above and the values you enter, so there is nothing to cite beyond the arithmetic.

Calculator last reviewed August 9, 2026. How we verify

Try an example

1-year at 4.5%, daily compounding 5-year ladder rung: $20k at 4%Short park: $50k for 6 months

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.