CD Calculator
Calculate the maturity value and interest earned on a certificate of deposit (CD) from your deposit, interest rate, term, and compounding frequency.
How it works
CD maturity formula
A = P × (1 + r/n)^(n × t) APY = (1 + r/n)^n − 1 P = deposit, r = annual rate, n = periods/year, t = years
A CD pays a fixed interest rate for a fixed term. Interest compounds at the stated frequency, so the maturity value grows a little faster than the simple rate implies. The APY expresses that compounding as a single effective annual percentage, which is the number to compare across CDs.
Worked example
A $10,000 CD at 4.5% compounded monthly for 5 years matures at about $12,517.96, earning $2,517.96 in interest. Its APY is about 4.59%.
Frequently asked questions
What is the difference between APR and APY on a CD?
APR is the nominal annual rate before compounding; APY includes the effect of compounding within the year. Because CDs compound, the APY is slightly higher than the APR, and APY is the fairer number to compare offers.
What happens if I withdraw early?
Most CDs charge an early-withdrawal penalty, often several months of interest. This calculator assumes you hold the CD to maturity, so it does not subtract any penalty.
Is CD interest taxable?
Yes. In most jurisdictions CD interest is taxable in the year it is earned, even if you don't withdraw it. Results here are pre-tax.