CD Calculator · Practical guide
How Much Will $10,000 in a CD Earn in a Year?
Exact earnings on a $10,000 1-year CD at today's common APYs, with the math shown.
At a glance
The Short Answer
A $10,000 one-year CD earns its APY, plain and simple: at 4.75% APY you earn $475.00, ending the year with $10,475.00. Because APY already includes compounding, the math is just $10,000 × 1.0475.
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Results
Earnings at Common APYs
Maturity values for $10,000 held for exactly one year:
| APY | Maturity Value | Interest Earned |
|---|---|---|
| 3.5% | $10,350.00 | $350.00 |
| 4.0% | $10,400.00 | $400.00 |
| 4.5% | $10,450.00 | $450.00 |
| 5.0% | $10,500.00 | $500.00 |
| 5.5% | $10,550.00 | $550.00 |
The Formula Behind It
Certificate of deposit growth follows FV = P × (1 + APY)^t, where P is your deposit, APY is written as a decimal, and t is the term in years. For a one-year term t = 1, so the maturity value is simply the deposit times (1 + APY). Every 0.25% of extra yield adds $25 to a $10,000 one-year CD.
What That Beats
Over the same year, a 1% savings account grows $10,000 to only $10,100.46. A 4.75% CD pays $374.54 more — and the rate is locked in even if savings rates fall. Enter your own deposit and APY in the calculator above to get your exact figure.
Frequently Asked Questions
Is CD interest paid monthly or at maturity?
It depends on the bank — some credit interest monthly or quarterly, others at maturity. Either way, the APY tells you the total you earn over a full year, so $10,000 at 4.75% APY yields $475 regardless of the crediting schedule.
Do I owe taxes on CD interest?
Yes. CD interest is generally taxable as ordinary income in the year it is credited, even if you leave it in the account until maturity.
What if rates rise after I open the CD?
Your rate stays fixed for the term — that is the trade-off for the guarantee. If you expect rising rates, consider a shorter term or a no-penalty CD.
Can I lose money in a CD?
Not at maturity — CDs at FDIC-insured banks are protected up to $250,000 per depositor. The only real risk is an early withdrawal penalty, which can eat into principal if you cash out very early.