Use this free CD calculator to see what a certificate of deposit will be worth at maturity. Enter your deposit, the APY, the term and the compounding frequency to instantly see your maturity value and the interest you’ll earn.
Estimates only. Early withdrawal penalties and rate terms vary by bank. Not financial advice.
How this CD calculator works
A certificate of deposit (CD) locks in a fixed rate for a set term. This CD calculator converts the APY into an exact monthly rate and grows your lump-sum deposit to maturity, so you can compare terms and banks. See how we rate banks and apps.
CD terms and early withdrawal
CDs usually pay more than regular savings in exchange for keeping your money untouched. Withdrawing early often triggers a penalty of several months’ interest, so choose a term you can commit to.
How to use this CD calculator
Enter your deposit amount, the APY your bank offers, the term in months and the compounding frequency. The calculator converts the APY into an exact rate and grows your lump sum to the end of the term, showing both the value at maturity and the interest you will earn. Compare several terms and banks side by side to find the best fixed-rate return for money you can lock away.
A certificate of deposit example
Place $10,000 in a 5-year CD at a 4.5% APY and it grows to about $12,518 at maturity, earning roughly $2,518 in interest. Because the rate is locked, you know the exact payout in advance – the trade-off is limited access, since early withdrawals usually trigger a penalty. CDs at insured banks are protected up to the legal limit; you can confirm coverage details with the FDIC.
CD vs high-yield savings
A CD locks your money for a fixed term in exchange for a guaranteed rate, while a high-yield savings account keeps your cash flexible but with a rate that can change at any time. If you know you will not touch the money for a set period, a CD often pays a little more and removes the temptation to spend. If you may need quick access, a savings account is the safer home. Many savers use both – a CD for money they can commit, and savings for everyday goals and their emergency buffer.
Frequently asked questions
How is CD interest calculated?
CD interest compounds on your deposit at the bank’s stated frequency. This tool converts the APY to an exact rate and compounds it over your chosen term to find the maturity value.
What happens when a CD matures?
At maturity you can withdraw the full balance or roll it into a new CD. Many banks auto-renew, so set a reminder before the grace period ends.
Are CDs worth it?
CDs suit money you won’t need for a fixed period and want to grow at a guaranteed rate. For flexible access, a high-yield savings account may fit better.
Is CD interest taxable?
Yes, CD interest is generally taxable in the year it is credited, even if you don’t withdraw it. Your bank issues a 1099-INT.
Is this CD calculator accurate?
The math is verified against known values and matches them to the cent. It excludes taxes and early-withdrawal penalties, which vary by bank.
