Certificate of Deposit (CD) Calculator
Use this free CD calculator to see how much your savings can grow. Enter your initial deposit, APY, and term. Get your maturity value and total interest instantly.
CD Calculator
CD Parameters
Your CD Results
Maturity Value
$10,450.00
Principal vs. Interest Breakdown
- Interest
- Principal
| Category | Amount | Percentage |
|---|---|---|
| Principal | $10,000.00 | 95.7% |
| Interest | $450.00 | 4.3% |
Quick start
- Enter your initial deposit.
- Enter the APY from the bank offer.
- Choose the CD term.
- See your maturity value and total interest earned.
Your results — what they mean
- Maturity value: The total amount you'll have at the end of the term.
- Total interest earned: Maturity value minus your initial deposit.
- The chart shows principal vs. interest so you can see where growth comes from.
How this calculator works (plain English)
- A CD pays a fixed yield for a set term.
- Banks publish APY (Annual Percentage Yield). APY bakes in compounding for one year.
- We use your deposit, APY, and term to project your balance through maturity.
- No extra deposits or withdrawals are assumed.
Tips to earn more on CDs
- Shop the APY. Compare banks and credit unions.
- Match the term to your needs. Longer terms often pay more but lock your money.
- Consider no-penalty CDs if you may need cash early.
- Build a CD ladder (several CDs with staggered maturities) for better access and rate flexibility.
- Always check early withdrawal penalties and minimum deposit rules.
FAQs
Do I pay taxes on CD interest?
Usually yes. Interest is typically taxable in the year it's earned. Check your local rules.
What if I need the money before maturity?
Most banks charge an early withdrawal penalty. It can reduce or erase the interest you earned.
Are CD earnings guaranteed?
The rate is fixed for the term. Your principal is generally safe if you hold to maturity, subject to bank terms and applicable deposit insurance limits.
Why does APY make comparison easier?
APY already includes compounding. Two CDs with different compounding schedules but the same APY will yield the same return over a year.
How accurate are these numbers?
They are estimates based on your inputs. Actual results depend on your bank's exact rules and timing.
Assumptions
- APY stays constant for the full term.
- Interest is credited on the bank's schedule with no partial withdrawals.
- No extra deposits are made during the term.
- Results are rounded to cents for readability.
Glossary (all terms used)
- Certificate of Deposit (CD):
- A savings product that pays a fixed yield for a set time. Money is locked until maturity.
- Initial Deposit (Principal):
- The amount you put into the CD at the start.
- APY (Annual Percentage Yield):
- The effective yearly return with compounding included. Used for comparisons and by this calculator.
- Interest Rate (Nominal Rate):
- The stated yearly rate without compounding included. Useful for reference, but not used here.
- Term / CD Term Length:
- How long the CD runs (e.g., 6 months, 12 months, 5 years).
- Maturity / Maturity Date:
- When the term ends and you can withdraw without penalty.
- Maturity Value:
- Your total balance at maturity (principal + interest).
- Total Interest Earned:
- Maturity value minus your initial deposit.
- Early Withdrawal Penalty:
- A fee (often several months of interest) if you withdraw before maturity.
- No-Penalty CD:
- A CD that allows early withdrawal without a penalty after a short lock period.
- CD Ladder:
- A set of CDs with staggered maturities to improve liquidity and manage rate risk.
- Deposit Insurance (e.g., FDIC/NCUA):
- Protection for eligible deposits up to legal limits; check local rules and coverage.
Disclaimer
This calculator provides estimates for informational purposes only. Actual returns may vary based on your financial institution's specific terms, fees, and policies. Always verify rates and conditions with your bank or credit union before opening a CD. Early withdrawal penalties may apply.
