The formula
How it works
See what a certificate of deposit is worth at maturity. Enter your deposit, the rate, the term in months and how often interest compounds to get the final value, the interest earned and the effective annual yield.
FAQ
What is the difference between APR and APY on a CD?
The APR is the stated annual rate; the APY (annual percentage yield) is what you actually earn once compounding is included, so it is a little higher. Banks advertise CDs by APY, and the calculator shows it so you can compare offers on a like-for-like basis.
Can I take the money out early?
Usually only with an early-withdrawal penalty, often several months of interest, because a CD locks your money in for the term in exchange for a fixed rate. This calculator shows the value if you hold to maturity, which is how CDs are meant to be used.
Does compounding frequency actually make much difference?
It has a real but modest effect — daily compounding earns slightly more than monthly or annual compounding at the same stated rate, because interest starts earning interest sooner. On a typical CD the difference is usually just a few dollars per $10,000, so the interest rate itself matters far more than the compounding frequency.
How does a CD compare to a high-yield savings account?
A CD locks in a fixed rate for a set term, so it protects you if rates fall but shuts you out if they rise, while a high-yield savings account keeps your money liquid and its rate moves with the market. Compare the CD’s APY here against a savings account’s current rate to see which suits your plans.
Are CDs insured like a regular bank account?
In the US, CDs from banks are typically FDIC-insured up to $250,000 per depositor, per institution, the same protection as a savings account. Credit union CDs carry equivalent NCUA coverage — check your institution to confirm.
What happens when the CD matures?
You get back the full maturity value shown here, and the bank either pays it out or, if you set up automatic renewal, rolls it into a new CD at the then-current rate. Mark the maturity date so you can decide instead of letting it renew automatically at a rate you have not checked.
Is there a minimum deposit for a CD?
Minimums vary by bank, often ranging from $500 to $2,500, though some CDs have no minimum at all. This calculator works with any deposit amount, so just enter what you actually plan to invest.
About the CD calculator
This calculator shows what a certificate of deposit (CD) will be worth when it matures. A CD pays a fixed interest rate in return for locking your money away for a set term, and the value at the end depends on the rate, the term and how often interest compounds. The calculator combines those into the maturity value, the interest earned and the effective annual yield you can use to compare CDs.
How to use it
Enter your initial deposit, the CD’s interest rate, the term in months, and the compounding frequency the bank uses. The calculator returns the maturity value, the total interest and the annual percentage yield (APY). For example, $10,000 in a 12-month CD at 4.5% compounded monthly matures at about $10,459, earning roughly $459 in interest.
The formula
A CD grows by compound interest, , where is the deposit, the annual rate, the compounding periods per year and the term in years (the months divided by 12). The APY comes from the same rate and frequency, , and is the true annual return once compounding is counted.
Where it is used
Savers use it to compare CDs from different banks and terms, since a small difference in rate or compounding changes the payout. It helps decide between a CD and a regular savings account, and to plan a CD ladder — several CDs maturing at staggered dates. Because the rate is fixed and guaranteed, a CD calculation is one of the few savings projections that is essentially certain.