CD Calculator
See what a certificate of deposit will be worth at the end of its term, from its APY or its interest rate.
Balance at maturity
$10,450.00
- Interest earned
- $450.00
- APY
- 4.5%
You would earn $450.00, for a balance of $10,450.00 at maturity.
Calculation breakdown
| Step | Formula | Result |
|---|---|---|
| Balance at maturity | $10,000.00 × (1 + 4.5%) ^ 1 years | $10,450.00 |
| Interest earned | $10,450.00 − $10,000.00 | $450.00 |
How it works
Enter your deposit, the term in months and the rate. Choose whether the rate you have is an APY or a stated interest rate.
Worked example
$1,000 at 6%, compounded monthly, for 12 months (the Regulation DD example):
- Balance: 1,000 × (1 + 0.06 ÷ 12) ^ 12 = $1,061.68
- Interest earned: $61.68
- APY: 6.17%
Sources
Frequently asked questions
How do you calculate CD interest?
Grow the deposit by the rate for each compounding period. With a stated rate, the balance is deposit × (1 + rate ÷ n) raised to n × years. With an APY, it is deposit × (1 + APY) raised to the years. $10,000 at a 4.5% APY for a year earns $450.
What is the difference between APY and the interest rate?
The interest rate is the stated yearly rate. The APY is what you actually earn in a year once compounding is counted. 6% compounded monthly has an APY of about 6.17%.
How is APY defined?
Under the Truth in Savings rule (Regulation DD), APY = 100 × [(1 + interest ÷ principal) ^ (365 ÷ days in term) − 1]. It is based on a 365-day year.
Does compounding matter?
A little. The same 6% rate earns $60 compounded once a year, $61.68 compounded monthly and $61.83 compounded daily on $1,000.
Are CD earnings taxed and is the CD insured?
CD interest is generally taxable income. CDs at FDIC-insured banks are insured up to the standard limit. This calculator shows the interest before any tax.
An estimate for information only. Your bank's terms, such as early withdrawal penalties and the day count it uses, can change the real result.