CD Calculator

Calculate how much a certificate of deposit (CD) will be worth when it matures, the interest it earns before and after tax, and what you would get back if you cashed it in early and paid the penalty. Enter the APY a bank advertises, or an interest rate and how often it compounds. Your inputs stay in your browser.

Your CD

Your CD

Banks advertise the APY, which already includes compounding.

The rate is
Interest compounds

Check the account disclosure; daily and monthly are most common.

CD term

Shows the month the CD matures.

Your federal plus state rate; CD interest is usually taxed as ordinary income.

Cashing in early (optional)

Leave blank to see the full term.

From the account disclosure, for example 3 months for a 1-year CD.

$10,605.96 at maturity: $605.96 of interest. See full results

Example: $10,000.00 in a 1 year, 6 months CD at 4% APY (illustrative, not a current rate). Enter your numbers to update.

Your CD at maturity

Value at maturity
$10,605.96
After 1 year, 6 months
Interest earned
$605.96
Before tax
APY
4%
Interest rate 3.922% compounded daily

Balance over the term

AfterInterest earnedBalance
1 year $400.00$10,400.00
1 year, 6 months $205.96$10,605.96

The same 3.922% interest rate compounded differently

CompoundingAPYInterest at maturity
Daily 4%$605.96
Monthly 3.994%$604.98
Quarterly 3.98%$602.96
Annually 3.922%$594.07

How CD interest is calculated

A CD pays a fixed rate for a fixed term, and you generally agree to leave the money in until it matures (CFPB: what is a CD). The calculator estimates the value at maturity with compound interest:

  • From the APY: value = deposit × (1 + APY)months ÷ 12. APY is the total interest over a year including compounding (Truth in Savings definition), so $10,000.00 at 4% APY for 1 year, 6 months grows to $10,605.96, earning $605.96.
  • From an interest rate: APY = (1 + rate ÷ n)n − 1, where n is the number of times interest compounds each year (365 for daily, 12 for monthly). A 4% rate compounded daily is a 4.081% APY, and the same CD would earn $618.33.

Terms follow the same formula: a 3 months CD at the example rate earns $98.53, and a 5 years CD earns $2,166.53, because interest also earns interest over the longer term.

APY, interest rate and compounding

Two CDs with the same interest rate can pay different amounts if one compounds more often. APY puts them on the same footing, which is why banks must disclose it. When comparing CD offers, compare APYs; choose "interest rate" in the calculator only when you have a rate and a compounding frequency rather than an APY. The table in the results shows the same rate compounded daily, monthly, quarterly and annually.

Early withdrawal: is it worth breaking a CD?

Withdrawing before maturity usually costs a penalty stated as months of interest, for example 3 months' interest on a 1-year CD. The calculator treats the penalty as that many months of simple interest on the deposit at the CD's interest rate. For the example CD with a 6-month penalty:

  • Cashing in after 1 year returns $10,203.89, a gain of $203.89 after the $196.11 penalty.
  • Cashing in after 2 months returns $9,869.47: the penalty is more than the interest earned, so you get back less than you deposited.

Before breaking a CD to move money to a higher rate, compare the extra interest you would earn with the penalty. Penalty rules vary by bank and are in the account disclosure; some banks calculate them on the amount withdrawn or in days of interest.

Taxes on CD interest

CD interest is generally taxable as ordinary income. Entering your combined federal and state rate shows what you keep: at a 22% rate, the example's $605.96 of interest leaves $472.65 after tax. CDs held in a retirement account are taxed differently. A tax professional can confirm how it applies to you.

Assumptions and limits

  • Interest stays in the CD until it matures. If you take interest out as it is paid, it does not compound and you earn a little less.
  • Each month counts as 1/12 of a year. Banks that count actual days may differ by a few cents.
  • The rate is fixed for the term, and nothing is added or withdrawn except in the early-withdrawal scenario.
  • Inflation, fees and what happens at renewal are not included.

Results are estimates, not an offer. Your bank's account disclosure lists the actual terms.

Methodology and testing

Automated tests compare maturity values, APY conversions, compounding comparisons and early-withdrawal results with an independent calculation done to 40 significant digits. How we build and test calculators.

Sources

  • What is a certificate of deposit (CD)?, Consumer Financial Protection Bureau. A CD is a savings account where you generally agree to leave the money for a set term; withdrawing early usually means paying a penalty; compare the term, rate and penalty when shopping.
  • Truth in Savings (Regulation DD) § 1030.2 Definitions, Consumer Financial Protection Bureau. Annual percentage yield is the total interest paid on an account over a 365-day period, reflecting the interest rate and the frequency of compounding.
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