CD Calculator (Certificate of Deposit)

Calculate the maturity value and interest earned on a Certificate of Deposit. Compare CD ladder strategies, early withdrawal penalties, and after-tax returns.

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Maturity Value
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Total Interest Earned —
Effective Rate for Term —
Extended More scenarios, charts & detailed breakdown ▾
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Maturity Value
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Interest Earned —
Average Daily Interest —
Effective Return —
Professional Full parameters & maximum detail ▾
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CD Returns

CD Maturity Value —
Total Interest Earned —
After-Tax Interest —
Inflation-Adjusted Real Gain —

Early Withdrawal Scenario

Value if Withdrawn Early —
Early Withdrawal Penalty Amount —

vs High-Yield Savings

HYSA Value (Same Period) —
CD Advantage over HYSA —

How to Use This Calculator

  1. Enter your Deposit Amount — how much you plan to put into the CD.
  2. Enter the APY — check current rates at your bank or on Bankrate/NerdWallet.
  3. Select the CD Term — longer terms typically offer higher rates.
  4. Select the Compounding Frequency — daily is most common.
  5. See your Maturity Value and interest earned. Use CD Ladder tab to split across multiple terms.

Formula

CD Maturity Value:

FV = P × (1 + APY)^(t/12)

  • P = Principal deposit
  • APY = Annual Percentage Yield (decimal)
  • t = Term in months

Example

Example: $10,000 deposit, 4.75% APY, 12-month CD, daily compounding.

  • Maturity Value: $10,475.00
  • Interest Earned: $475.00
  • After-Tax (22% bracket): $370.50 net interest
  • CD Ladder (4 × $2,500 at 4.5–5.0%): ~$487 total interest with quarterly liquidity

Frequently Asked Questions

  • CD interest is calculated using compound interest: Maturity Value = Principal × (1 + APY)^(term in years). APY (Annual Percentage Yield) already accounts for compounding, so you can simply use it directly for quick calculations.
  • A CD ladder splits your deposit across multiple CDs with different maturity dates (e.g., 6, 12, 18, 24 months). As each CD matures, you reinvest it. This gives you periodic access to funds while still earning higher rates than a savings account, balancing liquidity and yield.
  • Most CDs charge a penalty if you withdraw before maturity, typically 3 months of interest for short-term CDs and 6–12 months for longer terms. It is important to factor this in if you might need the money before the CD matures.
  • CDs often offer slightly higher rates than HYSAs, especially for longer terms, in exchange for locking up your money. HYSAs offer more flexibility with variable rates. In a falling rate environment, locking in a CD rate can be advantageous.
  • Yes, CD interest is taxable as ordinary income in the year it is credited to your account, even if you do not withdraw it. You will receive a 1099-INT from your bank. Consider holding CDs in a Roth IRA for tax-free growth.

Related Calculators

💰 Savings Calculator 📈 Compound Interest Calculator 📊 Investment Calculator 🔢 Simple Interest Calculator
Sources & References (5) ▾
  1. FDIC — Certificate of Deposit Overview — Federal Deposit Insurance Corporation
  2. NCUA — Share Certificates (CDs at Credit Unions) — National Credit Union Administration
  3. Federal Reserve — National Deposit Rates (H.15) — Federal Reserve
  4. CFPB — CDs and Savings Accounts — Consumer Financial Protection Bureau
  5. IRS — Publication 550: Interest Income from CDs — Internal Revenue Service