CD Calculator

Find out how much a certificate of deposit will be worth when it matures. Enter the rate your bank quotes and compare terms side by side.

The rate is
Value at maturity
–
Interest earned–
Effective APY–

Same rate, other terms
TermInterestValue

What is a CD?

A certificate of deposit (CD) is a savings account that pays a fixed interest rate for a fixed period, called the term. In return for the guaranteed rate, you agree to leave the money alone until the CD matures. Common terms run from three months to five years, and longer terms often pay higher rates.

How to use the CD calculator

  1. Enter the amount you plan to deposit.
  2. Enter the rate from your bank and choose whether it is an APY or an APR.
  3. Set the term in months or years.
  4. If you chose APR, pick how often interest compounds. Daily and monthly are the most common for CDs.

The calculator shows the value at maturity, the interest you will earn, and the effective APY. The table underneath compares the same rate across popular terms so you can see what a longer or shorter CD would pay.

APY vs. APR on a CD

APR (annual percentage rate) is the plain yearly interest rate. APY (annual percentage yield) is what you really earn in a year once compounding is included. Because banks are required to show APY on deposit accounts, it is the easiest number for comparing CDs from different banks.

For example, a 4.40% APR compounded daily works out to about a 4.498% APY. On $10,000 for a year that earns $449.80, almost the same as a CD advertised at 4.50% APY.

How CD interest is calculated

When you know the APY, the value at maturity is:

Value = Deposit × (1 + APY)years

When you know the APR and the compounding frequency n, it is:

Value = Deposit × (1 + APR / n)n × years

For a CD shorter or longer than a year, "years" is simply the term in months divided by 12.

Worked examples

  • $10,000 in a 12-month CD at 4.50% APY grows to $10,450.00, earning $450.
  • The same deposit in an 18-month CD at 4.50% APY grows to $10,682.54.
  • $25,000 in a 5-year CD at 4.00% APY grows to $30,416.32.

Tips for choosing a CD

  • Match the term to when you need the money. Early withdrawal penalties can wipe out months of interest.
  • Consider a CD ladder. Split your savings across several CDs that mature at different times, for example 1, 2, 3, 4 and 5 years. One CD comes due every year, so part of your money is always within reach.
  • Watch for automatic renewal. Put a reminder in your calendar a week before the maturity date so you can shop for a better rate.
  • Compare APY, not APR. APY already accounts for compounding, so it gives a fair comparison between banks.

Last reviewed October 2026.

Frequently asked questions

Should I enter the APY or the APR?

Enter whichever your bank shows, and pick the matching option. Most US banks advertise CDs by APY, which already includes compounding, so APY is usually the right choice. If you only know the interest rate (APR), choose APR and set how often it compounds.

What happens when a CD matures?

You usually get a short grace period, often around 7 to 10 days, to withdraw the money or move it. If you do nothing, many banks automatically renew the CD for the same term at whatever rate they offer that day.

What is an early withdrawal penalty?

If you take money out before the term ends, the bank keeps part of the interest. Penalties are often set as a number of months of interest, and longer CDs tend to have bigger penalties. Check the exact terms before you open the CD.

Are CDs insured?

CDs at FDIC-insured banks and NCUA-insured credit unions are covered up to $250,000 per depositor, per institution, for each ownership category. Spreading larger amounts across banks or ownership types can keep all of it insured.

Is CD interest taxable?

In a regular account, CD interest is generally taxed as ordinary income in the year it is earned, even if you leave it in the CD. Your bank reports it on Form 1099-INT. CDs held inside an IRA follow the IRA tax rules instead.

Is a CD better than a high-yield savings account?

A CD locks in a rate for a fixed term, which helps if rates fall, but your money is tied up until maturity. A high-yield savings account lets you withdraw any time, but its rate can change. Many savers keep an emergency fund in savings and put money they will not need for a while into CDs.