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CD Calculator

A certificate of deposit locks your money away for a fixed term at a fixed rate. Enter the deposit, the APY and the term to see exactly what you get back at maturity — the return is known in advance.

Your numbers

$
% / year
%

Annual percentage yield — the rate the CD advertises.

months

Result

Value at maturity
$10,450.00
Interest earned
$450.00
Initial deposit
$10,000.00
At maturity
ItemAmount
Initial deposit$10,000.00
Interest earned$450.00
Value at maturity$10,450.00
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How a CD grows

A CD advertises an APY — the annual percentage yield, which already includes the effect of compounding. So the value at maturity is simply: maturity = deposit × (1 + APY)^years A $10,000 deposit at 4.5% APY for one year returns $10,450. For terms that are not whole years, the exponent is the number of months divided by twelve.

APY vs APR

Always compare CDs on APY, not the nominal rate. APY folds in how often interest compounds, so it is the true, comparable yearly return. Two CDs with the same nominal rate but different compounding frequencies have different APYs — the APY is the honest number.

The trade-off: rate for access

You are paid a fixed, guaranteed rate in exchange for leaving the money untouched until maturity. Withdraw early and you typically forfeit some interest as a penalty. Longer terms usually pay more, but they also lock in today’s rate — a risk if rates are rising. A CD ladder (several CDs maturing at staggered dates) is the common way to balance yield against access.

Informational and educational result. Not a substitute for professional advice.

Frequently asked questions

Sources

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