CD Calculator
Estimate your certificate of deposit maturity value, interest earned, and effective yield.
Results
What is a CD Calculator?
A CD calculator projects the future value of a certificate of deposit based on your deposit amount, APY, term, and compounding frequency. It helps you compare CD returns against regular savings accounts.
How to Use This Calculator
- Enter the amount you plan to deposit.
- Input the annual percentage yield (APY) offered by your bank.
- Enter the CD term in months.
- Select how often interest compounds.
- Click Calculate to see maturity value, interest earned, and a savings comparison.
Frequently Asked Questions
What is APY?
Annual Percentage Yield reflects the actual rate of return after accounting for compounding. Unlike the nominal rate, APY tells you how much you really earn in a year.
Are CD earnings taxable?
Yes, interest earned on CDs is generally taxable as ordinary income in the year it is credited, even if you do not withdraw it.
What happens if I withdraw early?
Most CDs charge an early withdrawal penalty, which can reduce or eliminate your earned interest. Check your bank's terms before opening a CD.
How does compounding frequency affect returns?
More frequent compounding yields slightly more interest. However, the APY already incorporates compounding, so the difference between monthly and daily is usually small.