CD Calculator
Calculate the maturity value and interest earned on a certificate of deposit (CD) given the APY, term and compounding frequency.
Your $10,000.00 deposit grows to $10,460.25 by the time it matures, with no further deposits needed.
- Interest Earned$460.25
About the CD Calculator
A CD's advertised APY already bakes in compounding, so multiplying the rate by the deposit and the term in years overstates or understates what you'll actually get depending on how often the bank compounds — daily, monthly or quarterly compounding all produce slightly different maturity values from the same headline APY. This calculator does the actual compounding math instead of the rough version.
It's the tool for comparing two CD offers that look close on paper — a 12-month CD at one rate against an 18-month CD at a slightly lower one, say — where the real difference is finding out which term and rate combination actually leaves you with more money at maturity, not just which APY number is bigger.
Nothing you type here leaves your browser. You can plug in the exact deposit amount and rate from an offer you're considering without creating an account anywhere or having that number tied to your identity.
Frequently asked questions
How is CD interest actually calculated?
Using A = P(1 + r/n)^(nt), where P is your deposit, r is the APY, n is how many times per year the bank compounds, and t is the term in years. Banks typically compound CDs daily or monthly, which is why the compounding-frequency setting here changes the maturity value.
Is APY the same as the interest rate?
No. The interest rate is the stated annual rate before compounding; APY (annual percentage yield) already reflects compounding and is the number that determines what you actually earn — always compare CDs on APY, not the raw rate.
What happens if I withdraw from a CD before it matures?
Almost every CD charges an early withdrawal penalty, typically a forfeiture of some number of months' worth of interest, which can eat into principal on a short-term CD if you withdraw soon after opening it. Check the specific penalty terms before assuming this calculator's maturity value is guaranteed money.
Is a CD better than a high-yield savings account?
A CD locks in today's rate for the full term, which is an advantage if rates are expected to fall and a disadvantage if they rise, while a savings account's rate can move at any time but gives you liquidity a CD doesn't. Neither is universally better — it depends on your rate outlook and whether you'll need the cash before maturity.
Does compounding frequency actually make a meaningful difference?
At typical CD rates and terms, the difference between daily and monthly compounding is usually small — a few dollars on a modest deposit — but it grows with a larger balance and a longer term, which is why it's worth checking rather than assuming it's negligible.
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