Certificate Of Deposit Yield Calculator

Work out certificate of deposit yield instantly with clear inputs, formula shown and shareable results.

About Certificate Of Deposit Yield Calculator

A certificate of deposit pays interest calculated on an actual-over-365 basis at maturity, unlike commercial paper which is issued at a discount. The effective annual yield annualises the whole return including the compounding effect.

Formula

Certificate of deposit

Interest = principal × rate × days/365; effective yield = (maturity/principal)^(365/days) - 1

Worked example

With the default values below, Certificate Of Deposit Yield Calculator returns Maturity Value of $51,770,136.99. Change any input above and every figure here is recalculated in your browser.

Inputs used

Principal Investedminimum 0: 50,000,000
Quoted Rateaccepts 0–100 %: 7.1 %
Tenor In Daysaccepts 1–366: 182

Results

Maturity Value: $51,770,136.99
Interest Earned: $1,770,136.99
Effective Annual Yield: 7.2264%
Daily Interest Accrual: $9,726.03

Step by step

1Values used
2Certificate of deposit
3Maturity Value= 51,770,136.99
4Interest Earned= 1,770,136.99
5Effective Annual Yield= 7.2264
6Daily Interest Accrual= 9,726.03

Assumptions and limits

The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency 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.
Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.

Frequently Asked Questions

How does a certificate differ from a fixed deposit?

Certificates are negotiable and can be sold before maturity, whereas a fixed deposit must be broken with a penalty.

Are they issued at a discount?

Some are. Discounted certificates behave like commercial paper, so check the convention before comparing yields.