This CD calculator shows exactly what a certificate of deposit pays: enter the deposit, the APY and the term to see maturity value and interest earned — before the bank’s early-withdrawal penalties enter the story.

Value at Maturity–
Interest Earned–
Interest per Year (avg)–

APY already includes compounding — value = deposit × (1 + APY)^term. Compare against leaving the money in a savings account with the Savings Calculator; and remember CD interest is taxable in the year it accrues, and early withdrawal typically costs 3–12 months of interest.

How CDs Work

A certificate of deposit trades liquidity for yield: you promise the bank your money for a fixed term (3 months to 5 years is typical), and the bank promises a fixed APY, usually above savings-account rates. Because the quote is an APY — the effective annual yield including compounding — the maturity value is one clean formula: deposit × (1 + APY)^term. It is the Compound Interest engine with a contractual rate and a lock on the door. This calculator is part of our Finance Calculators collection.

Worked Example (Verified)

$10,000 at 5.00% APY for 18 months:

  • Maturity value: 10,000 × 1.05^1.5 = $10,759
  • Interest: $759 for the term — about $506/year equivalent
  • Same money at a 1% savings yield would earn ~$150 — the CD’s lock-up buys about $600 more, which is the whole decision in one comparison (run the alternative in the Savings Calculator).

CD Strategy and Gotchas

  • Early-withdrawal penalties are the contract’s teeth: typically 90 days of interest on short CDs, 6–12 months on long ones — penalties can eat principal if you exit in the first months.
  • CD ladders: split money across staggered maturities (1, 2, 3, 4, 5 years) so a slice frees up every year at long-term rates — the standard fix for the lock-up dilemma.
  • APY vs APR: APY includes compounding and is the honest comparison number; two CDs with the same APY pay the same regardless of daily vs. monthly compounding.
  • Rate risk runs both ways: locking in feels brilliant when rates fall and painful when they rise. Match term to when you genuinely need the money — house closings and tuition dates, not guesses.
  • Insurance: bank CDs carry FDIC insurance (credit-union share certificates, NCUA) up to $250,000 per depositor per institution.

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Frequently Asked Questions

How is CD interest calculated?

Value = deposit × (1 + APY)^years, since APY already bakes in compounding. $10,000 at 5% APY for 1.5 years = $10,759.

What is the difference between APY and APR on a CD?

APR is the stated periodic rate; APY is what you effectively earn per year after compounding. Compare CDs by APY only.

What happens if I withdraw from a CD early?

The bank deducts an early-withdrawal penalty (commonly 3–12 months of interest, per the CD’s terms) — on a very young CD the penalty can exceed the interest earned and cut into principal.

What is a CD ladder?

Owning several CDs with staggered maturity dates. Each year one matures (at long-term rates) and can be spent or rolled into a new longest rung — yield plus regular liquidity.

Is CD interest taxed?

Yes — as ordinary income in the year it accrues, even if it stays in the CD (you will receive a 1099-INT). CDs inside IRAs defer that tax.

Is this CD calculator free?

Yes — free, instant, no sign-up.