CD Calculator
Maturity value and interest earned on a certificate of deposit.
Input sheet
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Lock money in a certificate of deposit and you trade access for a guaranteed rate. This shows exactly what your deposit is worth at maturity and how much interest you earn over the term.
How it works
Using APY, the maturity value is deposit × (1 + APY)^years — APY already bakes in the compounding, so no extra periods are needed.
Because you enter the APY (annual percentage yield), the compounding is already baked in — APY is the true yearly growth after a bank's daily or monthly compounding. So the maturity value is just the deposit grown by (1 + APY) once per year, no extra periods to model.
A CD's appeal is certainty: the rate is fixed for the whole term, unlike a savings account that can drop at any time. The trade-off is liquidity — pulling money out early usually forfeits several months of interest.
Maturity value = deposit × (1 + APY) raised to the number of years. Interest earned = maturity value minus the original deposit.
Worked examples
$10,000 deposit at 5.00% APY for 2 years. → $11,025.00 at maturity; $1,025.00 interest earned.
$10,000 × 1.05 × 1.05 = $11,025. The second year earns interest on the first year's interest too, which is why the total is $1,025 rather than a flat $1,000.
Tips & gotchas
- Always compare CDs by APY, never by the nominal rate — APY is the only number that accounts for compounding and lets you compare offers fairly.
- Check the early-withdrawal penalty before committing. A high rate is worth little if an emergency forces you to forfeit months of interest.
- A CD ladder (several CDs maturing in staggered years) keeps part of your money accessible each year while still capturing longer-term rates.
- In a falling-rate environment, locking a longer term protects today's rate; in a rising one, shorter terms let you reinvest sooner at higher yields.
FAQ
Is the interest taxable?
Yes — CD interest is taxed as ordinary income in the year it is credited, even before withdrawal.
What is the difference between APY and APR on a CD?
APY includes the effect of compounding within the year; APR does not. For a CD you should always use APY, which is what this calculator expects, because it reflects the actual yield you receive.
Is my CD insured?
CDs at FDIC-insured banks or NCUA-insured credit unions are protected up to the applicable limit per depositor, per institution. This calculator assumes the deposit is held to maturity.
What happens at maturity?
Most banks give a short grace period to withdraw or move the funds; otherwise the CD often auto-renews at the then-current rate, which may be lower. Mark the maturity date so you can decide deliberately.
Does this assume reinvested interest?
Yes. The (1 + APY) growth assumes interest stays in the CD and compounds. If you take interest payouts instead, your principal stays flat and total earnings are lower.
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