CD Calculator — Certificate of Deposit
Find out exactly how much your Certificate of Deposit will be worth at maturity — enter the principal, the bank's APR, the term and the compounding frequency to see the interest earned and the Annual Percentage Yield.
%
months
Compounding frequency
Total balance at the end of the CD term
- 1
Annual rate (decimal)
4.75% ÷ 100 = 0.0475 - 2
Term in years
12 months ÷ 12 = 1 - 3
Growth factor
(1 + 0.0475 ÷ 365)^(365 × 1) = 1.048643Compound growth multiplier; multiply by principal to get maturity value. - 4
Maturity value
10,000 × 1.048643 = 10,486.43
How does this calculator work?
A CD grows to P × (1 + r/n)^(n·t), where r is the APR, n is the compounding frequency per year, and t is the term in years. The effective Annual Percentage Yield (APY) = (1 + r/n)^n − 1. Daily compounding is most common in US CDs and gives the highest APY for a given APR.
Formula
How this is calculated
A Certificate of Deposit (CD) is a federally insured savings account offered by US banks and credit unions at a fixed interest rate for a fixed term. The bank pays interest on the principal using the compound interest formula: A = P × (1 + r/n)^(n·t), where P is the principal, r is the annual rate divided by 100, n is the number of compounding periods per year, and t is the term in years.
The Annual Percentage Yield (APY) is the effective annual rate that accounts for compounding: APY = (1 + r/n)^n − 1. APY is always slightly higher than the nominal APR for any compounding more frequent than annual. US banks are required by Regulation DD to disclose APY so consumers can compare products fairly. Daily compounding (the most common in US CDs) produces the highest APY for a given APR.
CD interest is typically credited at maturity (for short-term CDs) or on a scheduled basis for longer terms. Withdrawing before maturity usually incurs an early-withdrawal penalty, often several months' worth of interest. This calculator assumes the full term is held and does not model the penalty. It also does not include taxes — interest earned on a CD is taxable as ordinary income in the year it is credited.
Frequently asked questions
APR (Annual Percentage Rate) is the nominal rate the bank quotes. APY (Annual Percentage Yield) is the effective annual rate after accounting for compounding. If a CD pays 5% APR compounded daily, the APY is approximately 5.127%. The more frequently interest compounds, the larger the gap between APR and APY.
Most CDs charge an early-withdrawal penalty, typically equal to a set number of months of interest (commonly 90–180 days for 1-year CDs, 150–365 days for longer terms). Some no-penalty CDs exist but generally offer lower rates. This calculator assumes you hold the CD to maturity.
Yes. In the US, interest on a CD is taxable as ordinary income in the year it is credited to your account. For multi-year CDs, you may owe tax each year even if the interest is not paid until maturity. Your bank will send a 1099-INT form each year interest is credited.
Also known as
TG we-Calculate Editorial Team. (2026). CD Calculator — Certificate of Deposit [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/cd-calculator
TG we-Calculate Editorial Team. "CD Calculator — Certificate of Deposit." TG we-Calculate. 2026. https://we-calculate.com/calculator/cd-calculator.
TG we-Calculate Editorial Team, "CD Calculator — Certificate of Deposit," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/cd-calculator
@misc{wecalculate_cd_calculator, title = {CD Calculator — Certificate of Deposit}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/cd-calculator}}, year = {2026}, note = {TG we-Calculate} }
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