CD Calculator
Calculate certificate of deposit maturity value and effective annual yield.
About CD Calculator
A certificate of deposit locks in a fixed rate for a fixed term. The bank compounds interest at the frequency stated in the contract (often daily), producing an APY that's slightly higher than the stated APR. Because you can't add to the CD after opening, the maturity value is simply a single-lump-sum compound growth calculation. CD interest is taxable as ordinary income in the year it's received.
Formulas
CD maturity value
Maturity Value = Principal × (1 + r/n)^(n×t)
- P
- Principal (initial deposit)
- r
- Annual interest rate (decimal)
- n
- Compounding periods per year
- t
- Term in years
Annual Percentage Yield
APY = (1 + r/n)^n − 1
- r
- Annual interest rate (decimal)
- n
- Compounding periods per year
Worked example
With the default values below, CD Calculator returns Maturity Value of $10,511.62. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Initial Depositminimum 0 $
- 10,000 $
- Annual Interest Rate (APR)accepts 0–30
- 5
- Term (months)accepts 1–120
- 12
- Compounding Frequencyone of Daily, Weekly, Monthly, Quarterly, Semi-annually, Annually
- Monthly
- Marginal Tax Rate (optional)accepts 0–60
- 0
Results
- Maturity Value
- $10,511.62
- Interest Earned
- $511.62
- Annual Percentage Yield (APY)The true annual yield accounting for compounding frequency.
- 5.1162%
- Total Return for Term
- 5.1162%
Step by step
- 1Initial deposit= $10,000.00
- 2Compounding: rate per period= 0.416667%
- 3Total compounding periods= 12
- 4Maturity value= $10,511.62
- 5Annual Percentage Yield (APY)= 5.1162%
Assumptions and limits
- The result is derived only from the 5 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation or fees or charges into account.
- Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
What is the difference between APR and APY on a CD?
APR is the nominal rate the bank quotes. APY (Annual Percentage Yield) accounts for how often interest compounds within the year. If a CD offers 5% APR compounded daily, its APY is about 5.127%. Banks are required to disclose APY — it's the number you should use to compare offers.
What happens if I withdraw early?
Most CDs impose an early withdrawal penalty, typically 90–360 days of interest depending on the term. Penalties can reduce you below your starting principal on short-term CDs. Some 'no-penalty' CDs exist but generally offer lower rates.
Are CD earnings taxed?
Yes — CD interest is taxed as ordinary income in the year it is credited to your account (or at maturity for short-term CDs). Enter your marginal tax rate in this calculator to see your after-tax yield.
Is my CD insured?
CDs at FDIC-insured banks are covered up to $250,000 per depositor per institution. CDs at NCUA-insured credit unions have equivalent coverage. Always verify the institution is insured before depositing large amounts.