CD Calculator

Calculate what a certificate of deposit will earn. Enter the deposit, the APY or interest rate and the term to see the ending balance and interest.

Estimate what a certificate of deposit will earn. Enter the deposit, the rate and the term.

Deposit amount ($) Rate (%) The rate is an Compounding (only if you chose interest rate) Term (months)

How a CD calculator works

A certificate of deposit (CD) locks your money at a fixed rate for a set term, for example 6, 12 or 60 months. This calculator shows your ending balance and the interest earned for the deposit, rate, term and compounding you choose. If you enter an APY, the balance grows by that effective yearly rate. If you enter an interest rate (APR), the calculator compounds it with the frequency you select and converts it to APY.

The formulas

With APY: ending balance = deposit × (1 + APY) ^ (months ÷ 12)
With interest rate: ending balance = deposit × (1 + rate ÷ n) ^ (n × years), where n is the number of compounding periods per year
APY from a rate: APY = (1 + rate ÷ n) ^ n − 1

Worked examples

10,000 at 4.50% APY for 12 months: ending balance $10,450.00, interest earned $450.00.
25,000 at 5.00% APY for 18 months: ending balance $26,898.25, interest earned $1,898.25.

These are illustrative numbers, not current bank offers. Always check the rate and term in your bank's disclosure.

APY or interest rate: which one to compare?

Compare CDs by APY, because it already includes the effect of compounding. Two CDs with the same interest rate can have different APY if one compounds daily and the other annually. The difference is small on short terms but grows with longer terms and larger deposits.

Things to check before opening a CD

Early withdrawal penalties: most CDs charge a penalty, often several months of interest, if you withdraw before maturity.
Insurance: deposits at FDIC-insured banks are protected up to $250,000 per depositor, per bank, per ownership category.
Taxes: interest is generally taxable income in the year it is credited, even if you do not withdraw it.
Renewal: many CDs renew automatically at the then-current rate; note the grace period.

How to use the cd calculator

Enter the deposit amount and the rate shown by the bank.
Choose whether the rate is an APY or an interest rate, and the compounding if needed.
Enter the term in months and press Calculate to see the balance and interest.

Frequently asked questions

How is CD interest calculated?

Interest compounds on your balance over the term. With an APY the balance is multiplied by (1 + APY) for each year. With a stated interest rate it is multiplied by (1 + rate ÷ n) for each compounding period.

What is the difference between APY and interest rate?

The interest rate is the nominal yearly rate. APY is the effective yearly return after compounding, so it is the better number for comparing CDs.

Is CD interest guaranteed?

The rate is fixed for the term, so the return is known in advance if you hold to maturity. Deposits at FDIC-insured banks are insured up to $250,000 per depositor, per bank, per ownership category.

Can I lose money in a CD?

Not from market movements, but an early withdrawal penalty can reduce your interest and in some cases your principal. Inflation can also reduce the real value of your return.

How much will 10,000 earn in a 12-month CD?

At 4.50% APY, 10,000 grows to $10,450.00 in 12 months, which is $450.00 of interest. At other rates, change the rate in the calculator.

Does this calculator include taxes?

No. The result is before taxes. Interest from a CD is generally taxable, so your after-tax return depends on your tax rate.

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