Finance calculators

CD Calculator

Updated Sep 1, 2026 By Jehan Wadia
Rate Formulas
CD Details
Lump-sum amount deposited into the CD.
Enter a valid positive deposit amount.
Fixed annual rate (APR). The effective APY is shown in results.
Enter a valid interest rate.
Years
Months (0–11)
Enter a valid term (at least 1 month).
Tax Settings (Optional)
Set to 0% if tax-deferred or not applicable.
Enter a valid tax rate (0–100).

CD Maturity Summary

End Balance (Pre-Tax)
$0.00
Total Interest Earned
$0.00
Effective APY
0.00%
Initial Deposit
$0.00
Detailed Breakdown
CD Parameters
Initial Deposit$10,000.00
Annual Rate (APR)5.00%
Effective APY5.12%
CD Term5 years
CompoundingMonthly
Total Compounding Periods60
Earnings Summary
Total Interest Earned$0.00
Interest as % of Deposit0.00%
End Balance (Pre-Tax)$0.00
Tax Owed$0.00
After-Tax End Balance$0.00
Balance Growth Over Time
End Balance Composition
Annual Interest Earned
Year-by-Year Breakdown
Year Starting Balance Interest Earned Ending Balance Cumulative Interest

Introduction

A certificate of deposit (CD) is a type of savings account that pays you a fixed interest rate for a set period of time. You put money in, leave it there, and earn more than a regular savings account. Our CD calculator helps you figure out how much your money will grow by the time your CD matures. Just enter your deposit amount, interest rate, term length, and how often interest compounds. You can also add your tax rate to see what you keep after taxes. The calculator shows your total interest earned, your final balance, and a full year-by-year breakdown with charts so you can see exactly how your savings grow over time.

How to Use Our CD Calculator

Enter your CD details below to find out how much money you will have when your CD matures. The calculator shows your total interest earned, effective APY, and a year-by-year breakdown of your balance growth.

Initial Deposit: Type the amount of money you plan to put into the CD. This is the starting balance that will earn interest.

Annual Interest Rate (%): Enter the yearly interest rate your bank offers on the CD. This is also called the APR.

CD Term: Set how long you will keep your money in the CD. Enter the number of years and any extra months between 0 and 11.

Compounding Frequency: Pick how often the bank adds interest to your balance. Common choices are daily, monthly, quarterly, semiannually, annually, or continuously. More frequent compounding means you earn slightly more interest.

Marginal Tax Rate (%): Enter your tax rate if you want to see how taxes affect your earnings. Leave it at 0% if you do not want to include taxes in the results. You can use our Tax Bracket Calculator to determine your marginal rate.

Click Calculate to see your results. Click Reset to go back to the default values and start over.

What Is a CD Calculator?

A CD calculator helps you figure out how much money you will earn from a certificate of deposit. A CD is a type of savings account where you put in a fixed amount of money and leave it there for a set period of time. In return, the bank pays you a guaranteed interest rate that is usually higher than a regular savings account. The catch is you cannot take your money out early without paying a penalty.

How Does a CD Work?

When you open a CD, you agree to three main things: how much money you deposit, the interest rate, and how long you will keep it there (called the term). Terms can range from a few months to several years. During that time, your money earns interest. That interest can compound, which means you earn interest on your interest. The more often it compounds (daily, monthly, or quarterly), the more money you earn by the end.

APR vs. APY

The APR (annual percentage rate) is the basic interest rate the bank gives you. The APY (annual percentage yield) is the real amount you earn after compounding is factored in. The APY is always equal to or higher than the APR. When comparing CDs, always look at the APY to get a true picture of your earnings. Our APY Calculator can help you convert between APR and APY for any compounding frequency.

Do You Pay Taxes on CD Interest?

Yes. The interest you earn from a CD counts as taxable income. The IRS requires you to report it on your tax return each year. How much tax you owe depends on your marginal tax rate. This calculator lets you enter your tax rate so you can see your actual take-home earnings after taxes.

Are CDs a Good Investment?

CDs are one of the safest places to put your money. They are insured by the FDIC up to $250,000 per depositor, per bank. They work best when you have money you know you will not need for a while and you want a guaranteed return. However, because they lock up your funds, they are not ideal for emergency savings. If interest rates rise after you open a CD, you are stuck with the lower rate until your term ends.

Formulas used

Future Value (Discrete Compounding)
FV = P \left(1 + \frac{r}{n}\right)^{n \cdot T}
Future Value (Continuous Compounding)
FV = P \, e^{r \cdot T}
Annual Percentage Yield (Discrete)
APY = \left(1 + \frac{r}{n}\right)^{n} - 1
Annual Percentage Yield (Continuous)
APY = e^{r} - 1
Total Interest Earned
I = FV - P
Tax Owed on Interest
Tax = I \times t
After-Tax End Balance
Balance_{after} = P + I \times (1 - t)

Frequently asked questions

What is the difference between a CD and a regular savings account?

A CD locks your money for a set period of time and pays a higher interest rate. A regular savings account lets you take money out anytime but pays less interest. With a CD, you get a guaranteed rate, but you pay a penalty if you withdraw early.

What does continuously compounding mean?

Continuous compounding means interest is added to your balance at every possible instant, not just once a day or once a month. It uses a special math formula with the number e. In practice, it earns only slightly more than daily compounding, but some banks and financial products use it.

How is the effective APY calculated?

The effective APY is calculated using your annual interest rate and how often it compounds. The formula is APY = (1 + r/n)^n − 1, where r is the annual rate and n is the number of compounding periods per year. For continuous compounding, the formula is APY = e^r − 1. The APY tells you the true yearly return on your deposit.

What happens if I withdraw my money from a CD early?

Most banks charge an early withdrawal penalty if you take money out before the CD matures. The penalty is usually a set number of months of interest. This calculator does not include early withdrawal penalties, so your actual payout could be less if you cash out early.

Can I add monthly deposits to my CD?

No. A standard CD only accepts one initial deposit. You cannot add more money after you open it. This calculator is built for that single lump-sum deposit. If you want to save with regular contributions, a savings account or a CD ladder strategy may work better for you.

What is a CD ladder?

A CD ladder is when you split your money across several CDs with different term lengths. For example, you might open CDs that mature in 1, 2, 3, 4, and 5 years. As each one matures, you reinvest it into a new long-term CD. This gives you regular access to some of your money while still earning higher rates on longer terms.

What is the best CD term to choose?

It depends on your goals. Longer terms usually offer higher interest rates, but your money is locked up for more time. Shorter terms give you quicker access but may pay less. Pick a term that matches when you will need the money. If rates are rising, shorter terms let you reinvest sooner at higher rates.

Are CDs safe if a bank fails?

Yes, as long as your bank is FDIC insured. The FDIC covers up to $250,000 per depositor, per bank. If your deposit is within that limit, your money is protected even if the bank goes out of business.

What is the minimum deposit for a CD?

It depends on the bank. Some banks let you open a CD with as little as $0 or $500. Others require $1,000 or more. Higher deposits sometimes qualify for better interest rates, often called jumbo CDs, which typically require $100,000 or more.

Why does my year-by-year table show a partial year at the end?

If your CD term includes extra months beyond a full year, the last row in the table covers only that partial period. For example, a 2-year, 6-month CD will show Year 3 with just 6 months of interest instead of a full year.

How is interest taxed each year if I have a multi-year CD?

The IRS requires you to report CD interest as income in the year it is earned, even if you do not withdraw it. This calculator applies your tax rate to the total interest at maturity for simplicity. In real life, you may owe taxes each year on the interest that accrues, not just at the end.

What rate should I enter if my bank quotes an APY instead of an APR?

This calculator asks for the APR, which is the base annual rate before compounding. If your bank only gives you the APY, you can convert it back to APR or enter the APY and set compounding to annually. When compounding is annual, the APR and APY are the same number.

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