CD Calculator

The calculator needs four figures, and two optional ones if you want a sharper picture. Each step below matches a field in the tool above, in the order it appears.

Your balance at maturity appears first, with total interest, total deposited and the effective APY beside it. The Growth tab charts your deposit and interest period by period, and the Breakdown tab shows how much of the final balance is interest.

Under the tool, the accumulation schedule lists every period in full. Switch between the yearly and monthly views, and use Print, Download CSV or Copy link to keep the figures or share them. Advanced options adds a monthly contribution, expected inflation and a savings APY to compare against.

A certificate of deposit is a savings product that pays a fixed interest rate for a fixed period of time. You agree to leave your money untouched until a set maturity date, and in return the bank pays a guaranteed return. Terms usually range from three months to five years or longer.

CDs sit at the low-risk, low-return end of the savings scale. The rate is locked for the full term, so your return does not change even if market rates fall. This predictability is the main reason savers choose CDs over variable-rate accounts.

In exchange for that guaranteed rate, your money is committed for the term. Withdrawing early normally triggers a penalty, so a CD suits money you will not need until the maturity date.

CD interest is calculated with the compound interest formula, which grows your balance on both the principal and the interest already earned. The core formula is A = P x (1 + APY) raised to the power of t, where P is your deposit, APY is the annual percentage yield, and t is the term in years. The more often interest compounds, the slightly higher your final balance.

This page gives the short version. For the full formula, worked monthly examples, and simple versus compound interest explained step by step, use our dedicated CD interest calculator.

The interest rate is the base annual rate, while the APY is the effective yearly return after compounding is included. APY is always equal to or higher than the base rate, which is why it is the number you should compare between banks. A common mistake is entering the base rate into a calculator when the bank quoted an APY.

To convert a base rate to APY, or to compare two CDs on a true like-for-like basis, use our CD APY calculator.

Compounding frequency is how often the bank adds earned interest back to your balance. Common intervals are daily, monthly, quarterly, and annually. As a general rule, more frequent compounding produces a slightly larger return at the same rate.

The difference is small on short terms but grows over multi-year CDs. You can model each interval on our CD interest calculator.

The table below shows what a $10,000 deposit would earn at an example APY of 4.00%, held to maturity. These figures are illustrative, so enter your bank's actual APY in the calculator above for exact numbers. Longer terms earn more because interest compounds over a greater period.

A one-year CD on $10,000 at 4.00% APY returns $400 in interest. Over five years, the same deposit and rate returns $2,166.53, because each year's interest earns interest of its own. This is the compounding effect working in your favor.

Real returns depend on the APY your bank offers and the term you choose. Longer terms usually pay higher rates but lock your money away for longer, so match the term to when you will need the funds.

Not every CD works the same way. The main types below suit different goals and levels of flexibility.

A CD ladder is a strategy that splits your money across several CDs with staggered maturity dates. For example, instead of one five-year CD, you open CDs maturing in one, two, three, four, and five years. As each one matures, you gain access to a portion of your money or reinvest it at current rates.

This gives you regular access to funds while still earning longer-term rates. To plan the exact rungs and returns, use our CD ladder calculator.

CDs are among the safest savings products available in the United States. A CD from an FDIC-insured bank is protected up to $250,000 per depositor, per institution, per ownership category. If the bank fails, your insured balance is guaranteed by the federal government.

Credit unions offer the same protection through the National Credit Union Administration, known as NCUA insurance. The coverage limit and structure are effectively identical to FDIC coverage. Always confirm your institution carries FDIC or NCUA insurance before opening a CD.

If you hold more than $250,000, you can spread deposits across separate insured institutions to keep every dollar covered. This is a common approach for savers with large balances.

A CD is not the only low-risk place to hold savings. The options below may suit you better depending on your need for access and yield.