CD Calculator (Certificate of Deposit)
A certificate of deposit pays a fixed rate in exchange for leaving money untouched for a set term. Enter the deposit, APY and term in months to see the value at maturity.
Enter your figures below. Results update as you type.
Value at maturity$10,682.54
- Your deposit 94%
- Interest after tax 6%
- Interest earned
- $682.54
- Tax on interest
- $0.00
- Interest after tax
- $682.54
How the CD calculation works
Value at maturity = deposit x (1 + APY)^(months / 12)
Interest on a CD is taxable in the year it is credited, even if you do not withdraw it. Enter your marginal tax rate to see the after-tax result.
Frequently asked questions
What happens if I withdraw from a CD early?
Most banks charge an early withdrawal penalty, commonly three to twelve months of interest depending on the term.
How do I calculate interest on a CD?
Multiply the deposit by the APY for each full year. $10,000 at 4.5% APY earns $450 in 12 months. For a 6-month CD at the same APY the interest is about $222.50.
What is a CD ladder?
A way of spreading money across CDs with different terms, such as 1, 2, 3, 4 and 5 years. One CD matures each year, giving you regular access to cash while most of the money earns longer-term rates.
Are CDs safe?
CDs from banks are FDIC insured and those from credit unions are NCUA insured, up to $250,000 per depositor, per institution. The main risk is needing the money early and paying a withdrawal penalty.
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