CD Calculator
Enter a deposit, rate, compounding schedule and term. The default example grows to $10,448.98 over 12 months, earning $448.98 in interest at an APY of 4.49%.
How the CD calculator works
A certificate of deposit pays a set interest rate if you leave the money in for the full term. This calculator takes your deposit, the rate, how often interest compounds and the length of the term, then shows the ending balance, the interest earned and the annual percentage yield (APY).
Banks may quote either a stated rate (APR) or an APY. Use the Rate type menu to match what your bank advertises. APY already includes the effect of compounding, so it is the better number for comparing CDs.
The formulas
Here m is the number of compounding periods per year: 365 for daily, 12 for monthly, 4 for quarterly, 2 for semi-annual and 1 for annual.
Example: This is an illustration, not a quote. A deposit of $10,000 at a stated rate of 4.40 percent compounded monthly for 12 months has an APY of 4.49%. The ending balance is $10,448.98, which means $448.98 of interest. Switch the compounding to annual and the APY falls back toward the stated rate, because interest is added less often.
What this calculator leaves out
- Early withdrawal penalties. Terms differ by bank, so read your account disclosure before you open a CD.
- Taxes. Interest on a CD is generally taxable income in the year it is credited or paid, depending on the term and your bank.
- Renewal. Most CDs renew automatically at the rate on offer at maturity, which may differ from your original rate.
Deposits at an FDIC-insured bank are covered up to the standard amount of $250,000 per depositor, per bank, per ownership category. To compare CD growth with other savings, try the compound interest calculator.
This calculator is for general information and is not financial, tax or legal advice.
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Frequently asked questions
What is the difference between APR and APY on a CD?
APR is the stated annual rate before compounding. APY includes compounding, so it is the actual yearly yield. In the default example a stated rate of 4.40 percent compounded monthly gives an APY of 4.49%.
How much interest will a CD earn?
It depends on the deposit, APY and term. The default example earns $448.98 on $10,000 over 12 months. Change the inputs above to see your own figure.
Does compounding frequency matter much?
Slightly. More frequent compounding raises the APY a little for the same stated rate. The APY is the number to compare between banks.
Is CD interest taxable?
Generally yes, as ordinary interest income. Your bank reports interest to you and the IRS, usually on Form 1099-INT. Ask a tax professional about your case.
Can I withdraw before the term ends?
Usually with a penalty. The penalty varies by bank and is set out in the account disclosure, so check it before you deposit.
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