CD Calculator
Calculate what a certificate of deposit (CD) is worth at maturity from its APY, the term in months and your opening deposit. Enter two offers in turn to see which one pays more.
How to use the CD Calculator
- Enter your opening deposit, the APY the bank quotes for the CD and the term in months.
- Press Calculate to see the interest earned and the total at maturity.
- Change the APY or the term and calculate again to compare two CDs, or a CD with a savings account's APY over the same months.
The CD maturity value formula
A = P (1 + APY)^t
P is the opening deposit, APY is the annual percentage yield the bank quotes, which already includes compounding, and t is the term in years. The calculator takes t as the months you enter divided by 12, so a 6-month CD uses t = 0.5. The total and the interest are rounded to the cent.
Worked example
A $10,000 deposit in a 24-month CD at 5.00% APY: A = 10,000 × (1.05)^2 = $11,025.00 at maturity, after $10,500.00 at the end of year 1. Total interest earned: $1,025.00.
Frequently asked questions
Does the calculator take off an early withdrawal penalty?
No. It assumes the money stays in the CD until it matures. The CFPB says that withdrawing early means paying a penalty fee to the bank, and it suggests comparing that penalty along with the term and the rate when you shop for a CD.
Are CD rates better than high-yield savings?
Not always. A CD fixes its APY for the whole term, while a savings account's rate can change at any time. When banks expect rates to fall, some CDs pay less than the best savings accounts, but the CD keeps its rate after the cuts arrive. Compare both by APY, since banks quote both that way, and read the early withdrawal penalty before you lock the money up. To see what a given APY earns in a month, a year or five years, check how much $10,000 earns at 4.5% APY.
Should I use a CD ladder?
A CD ladder staggers maturities (e.g., 1-, 2-, 3-, 4- and 5-year CDs) so a portion matures each year. Provides liquidity while capturing longer-term yields.