🏦 CD Calculator
Certificate of Deposit Calculator - Calculate CD maturity value and interest
How to Use This Calculator
Enter Initial Deposit
Input the amount you plan to deposit into the CD (e.g., $10,000).
Enter Interest Rate and Term
Input the annual interest rate (e.g., 3.5%) and the CD term in years (e.g., 5 years).
Select Compounding Frequency
Choose how often interest is compounded (daily is most common for CDs).
View Results
See your maturity value, interest earned, APY, and total return percentage.
Formula
Maturity Value = Principal × (1 + r/n)n×t
Interest Earned = Maturity Value - Principal
APY = (1 + r/n)n - 1
Where: r = annual interest rate (decimal), n = compounding frequency, t = term in years
Example Calculation:
For a $10,000 CD at 3.5% annual rate, 5-year term, compounded daily:
Step 1: Convert rate to decimal
r = 3.5% = 0.035
Step 2: Calculate maturity value
Maturity Value = $10,000 × (1 + 0.035/365)365×5
Maturity Value = $10,000 × (1.000096)1825
Maturity Value = $10,000 × 1.191 = $11,910
Step 3: Calculate interest earned
Interest Earned = $11,910 - $10,000 = $1,910
About CD Calculator
The CD (Certificate of Deposit) calculator helps you determine the maturity value and interest earned on a CD investment. CDs are time deposits offered by banks and credit unions that typically offer higher interest rates than regular savings accounts in exchange for leaving your money untouched for a specified term. This calculator accounts for compound interest and shows you the APY (Annual Percentage Yield) to help you compare different CD options.
When to Use This Calculator
- CD Shopping: Compare different CD options to find the best rates and terms
- Savings Planning: Calculate how much your CD will be worth at maturity
- Investment Comparison: Compare CD returns with other savings and investment options
- Financial Planning: Plan for future expenses by calculating CD maturity values
- Rate Comparison: Compare APY across different banks and CD products
Why Use Our Calculator?
- ✅ Accurate Calculations: Calculates compound interest and APY accurately
- ✅ Multiple Frequencies: Supports all common compounding frequencies
- ✅ Complete Information: Shows maturity value, interest, APY, and total return
- ✅ 100% Free: No registration or payment required
- ✅ Mobile Friendly: Works seamlessly on all devices
- ✅ Easy Comparison: Compare different CD options side by side
Common Applications
Emergency Fund Planning: Calculate how much your emergency fund will grow in a CD, balancing accessibility needs with higher returns. CDs lock your money for a term but offer better rates than savings accounts.
Retirement Planning: Use CDs as part of a conservative retirement portfolio. Calculate how laddered CDs (multiple CDs with different maturity dates) can provide steady income streams.
Goal-Based Savings: Calculate CD maturity values for specific goals like saving for a down payment, vacation, or major purchase. CDs are great for goals with known timeframes.
Rate Shopping: Compare CD rates from different banks. Higher APY means more interest earned. Online banks often offer better CD rates than traditional brick-and-mortar banks.
Tips for Best Results
- Look for CDs with the highest APY, not just the highest nominal rate
- Consider CD terms that match your timeline - longer terms often have higher rates
- Check for early withdrawal penalties before investing
- Compare APY across different banks - online banks often offer better rates
- Consider CD ladders (multiple CDs with different terms) for better liquidity
Frequently Asked Questions
What is a CD?
A CD (Certificate of Deposit) is a time deposit offered by banks and credit unions. You deposit money for a fixed term (e.g., 6 months, 1 year, 5 years) and earn a fixed interest rate. CDs typically offer higher rates than savings accounts but require you to keep your money deposited for the full term.
What happens if I withdraw early from a CD?
Early withdrawal from a CD typically results in a penalty, usually a percentage of the interest earned or a fixed number of months' interest. The exact penalty varies by bank and CD term. Always check the penalty terms before investing.
What's the difference between interest rate and APY?
The interest rate is the nominal rate without compounding. APY (Annual Percentage Yield) accounts for compounding and shows the actual annual return. APY is always equal to or higher than the nominal interest rate. Always compare APY when choosing CDs.
Are CDs FDIC insured?
Yes, CDs offered by FDIC-insured banks are insured up to $250,000 per depositor, per bank, per account category. This makes CDs a very safe investment option, though they offer lower returns than stocks or bonds.
What's a CD ladder?
A CD ladder is a strategy where you invest in multiple CDs with different maturity dates (e.g., 1-year, 2-year, 3-year, 4-year, 5-year CDs). As each CD matures, you can reinvest or use the funds. This provides both higher returns and better liquidity than a single long-term CD.