CD Calculator
See exactly what a certificate of deposit will be worth at maturity, including the interest earned and the effective annual yield (APY). Enter your deposit, APR, term, and compounding frequency to compare CD offers in seconds.
How to Use
- Enter your initial deposit (the principal you lock into the CD).
- Enter the APR — the nominal annual interest rate the bank quotes.
- Enter the term in months (e.g. 12 for a 1-year CD, 60 for a 5-year CD).
- Choose the compounding frequency: daily, monthly, quarterly, or annually.
- Read the maturity value, total interest earned, and the effective APY.
Show Work
Notes
About the CD Calculator
The CD Calculator is a free tool for personal-finance and money decisions. It runs right in your web browser, so there is nothing to download. See exactly what a certificate of deposit will be worth at maturity, including the interest earned and the effective annual yield (APY). Enter your deposit, APR, term, and compounding frequency to compare CD offers in seconds.
How it works
Type your numbers into the boxes. The answer shows up right away — you do not have to press a button. If you change a number, the answer changes too. So you can try different numbers and watch what happens, or check an answer you worked out yourself. Just make sure each box has the right kind of number in it.
Want the deeper story? The Knowledge Base explains the ideas behind the tools in more detail.
Frequently Asked Questions
What is the difference between APR and APY on a CD?
APR is the nominal annual rate before compounding; APY (annual percentage yield) is the effective rate after compounding is applied, calculated as APY = (1 + APR/n)^n − 1, where n is the number of compounding periods per year. APY is always equal to or higher than APR, and banks are required to advertise CDs by APY so you can compare them fairly regardless of compounding schedule.
How does compounding frequency affect my return?
More frequent compounding earns slightly more because interest starts earning interest sooner. Daily compounding beats monthly, which beats quarterly, for the same APR — but the difference is small at typical CD rates. The headline APY already bakes in the compounding frequency, so comparing CDs by APY captures this automatically.
What happens if I withdraw from a CD early?
CDs lock your money for the term, and pulling it out early usually triggers an early-withdrawal penalty — commonly 3 to 12 months of interest depending on the term length. That penalty can eat into your principal if you withdraw soon after opening. This calculator shows the full-term maturity value and does not subtract any early-withdrawal penalty.
Are CDs better than a high-yield savings account?
CDs typically offer a fixed, often higher rate in exchange for locking up your money for the term, while high-yield savings accounts stay liquid but have rates that float with the market. CDs make sense for money you will not need until a known date; savings accounts are better for an emergency fund. Many savers build a CD ladder to balance yield and access.
Is the interest on a CD taxable?
Yes. In the U.S., CD interest is taxed as ordinary income in the year it is credited, even if you do not withdraw it, and the bank reports it on Form 1099-INT. The maturity value here is pre-tax, so your actual after-tax return will be lower depending on your bracket. This is an estimate, not tax advice — consult a professional for your situation.
How do I use the CD Calculator?
Just type your numbers. The answer shows up right away — there is no button to press. Change anything and it updates by itself.
Is it free? Does it work without internet?
Yes to both. It is free with no sign-up, and once the page has loaded it keeps working even with no internet.
Where does my data go?
Nowhere — every calculation runs on your own device. Nothing you enter is uploaded, logged, or stored.
Common Use Cases
Comparing CD offers
Put two CDs with different rates and compounding on the same APY basis to find the better deal.
Planning a CD ladder
Compute maturity values across 1-, 2-, 3-, and 5-year CDs to structure a ladder with staggered access.
Saving for a known goal
Lock funds for a wedding, down payment, or tuition due on a fixed date and see exactly what they will grow to.
Parking an emergency surplus
Estimate the interest on cash you will not need short-term versus leaving it in a checking account.
Checking a bank quote
Verify a bank's advertised APY and maturity figure against an independent calculation before opening the CD.
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