CD Calculator

Calculate your Certificate of Deposit returns, including total interest and maturity value.

Enter Your Information

$
%
months

Results

Monthly Payment $0
Total Interest $0
Total Cost $0
Payoff Date -

About the Cd Calculator

A Certificate of Deposit (CD) locks money for a fixed term at a fixed rate, paying typically higher than savings accounts in exchange for the lock-in. CDs are FDIC-insured up to $250,000 per depositor per bank. This page covers the maths, when CDs make sense, and the laddering strategy that keeps you flexible.

The Formula

Maturity value = P × (1 + r/n)^(n×t), where P is deposit, r is APY, n is compounding periods/year, t is term in years. Most CDs compound daily or monthly.

Worked Example

$10,000 in a 12-month CD at 5.0% APY: $10,000 × (1.05)^1 = $10,500. 5-year CD at 4.5% APY: $10,000 × (1.045)^5 = $12,461.

When CDs make sense

Money you know you won't need for the term length, want guaranteed return on, and want FDIC protection. Common: emergency fund overflow, money earmarked for a known future purchase, conservative retiree allocation.

CD laddering

Split your CD money across 5 CDs maturing in 1, 2, 3, 4, 5 years. As each matures, reinvest in a new 5-year CD. Result: a 5-year CD's rate (highest available) on average, with 20% maturing each year for flexibility.

Early withdrawal penalties

Typical penalty: 3-6 months of interest for terms under 12 months, 6-12 months interest for longer terms. If you might need the money, choose a no-penalty CD or HYSA instead — but expect a lower rate.

Common Mistakes

  • Locking into a long-term CD when rates are likely to rise. Build a ladder to mitigate.
  • Forgetting the CD will renew automatically — sometimes at a worse rate. Mark maturity dates and decide actively.
  • Putting more than $250k at one bank — FDIC coverage caps at that.

Frequently Asked Questions

Are CD earnings taxed?
Yes, as ordinary income on a 1099-INT each year, even if you don't withdraw.

Can I get better than a CD?
I-bonds, Treasury bills, brokered CDs, and high-yield savings often compete. Compare APYs.

This calculator is for informational purposes only and does not constitute financial, tax, or legal advice. Consult a licensed professional before making significant financial decisions.