Investment

CD Calculator

Calculate the return on a Certificate of Deposit (CD) at maturity including compound interest earnings.

Input Parameters

Results

—

Maturity Value

Interest Earned —

Effective Annual Yield —

Monthly Interest —

Certificate of Deposit (CD)

CDs are low-risk, FDIC-insured savings instruments with fixed interest rates for a set term. Higher APY and longer terms result in greater returns. Early withdrawal penalties may apply.

What is the CD Calculator?

The Certificate of Deposit (CD) Calculator projects the guaranteed, risk-free returns of a bank CD. By locking your money away for a specific time, banks offer you a higher interest rate than a standard savings account.

How It Works (Algorithm)

CDs utilize compound interest, usually compounding monthly or daily. Because the rate is locked in for the entire term (e.g., 5 years), the calculator uses the standard compound growth formula to predict the exact maturity value down to the penny.

$$ A = P \left(1 + \frac{r}{n}\right)^{nt} $$

Computes the maturity value of a fixed-term deposit.

How to Use It

Enter the initial deposit amount. Enter the term length of the CD in months or years. Input the APY (Annual Percentage Yield) offered by the bank. The tool will calculate exactly how much total interest you will earn when the CD matures.