CD Calculator

Calculate Certificate of Deposit returns and compare CD options

The CD Calculator helps you determine how much your Certificate of Deposit will earn over time. Compare different CD terms, rates, and compounding frequencies to find the best option for your savings goals.

What would you like to calculate?

Initial Deposit ($)

Annual Interest Rate (%)

CD Term

Compounding Frequency

Early Withdrawal Analysis (Optional)

Early Withdrawal Penalty (%)

Popular CD Terms

CD Analysis Results

Enter CD details to see your returns

How Certificates of Deposit Work

CD Basics

Fixed Term: CDs have a specific maturity date, typically ranging from 3 months to 5 years.

Fixed Rate: Interest rate is locked in for the entire term, providing predictable returns.

FDIC Insured: Most CDs are insured up to $250,000 per depositor, per bank.

Early Withdrawal Penalty: Withdrawing before maturity typically incurs a penalty.

Compound Interest: Interest compounds based on the bank's schedule (daily, monthly, quarterly).

CD Types

Traditional CD: Fixed rate and term with penalty for early withdrawal

Bump-up CD: Allows you to increase rate once during the term

Step-up CD: Rate increases automatically at predetermined intervals

Liquid CD: Allows limited withdrawals without penalty

Jumbo CD: Requires higher minimum deposit (usually $100,000+)

IRA CD: CD held within an Individual Retirement Account

CD Investment Strategies

CD Laddering

Split your money across multiple CDs with different maturity dates.

Benefits: Regular access to funds, protection against rate changes

Example: $10,000 split into 5 CDs of $2,000 each, maturing every 6 months

Barbell Strategy

Combine short-term and long-term CDs to balance liquidity and returns.

Benefits: Flexibility with higher yields

Example: 50% in 6-month CDs, 50% in 5-year CDs

Rate Anticipation

Choose CD terms based on interest rate expectations.

Rising Rates: Shorter terms to reinvest at higher rates

Falling Rates: Longer terms to lock in current rates

Example: 18-Month CD Calculation

Calculate returns on a $25,000 CD at 4.5% APY for 18 months

Given Information

Principal:$25,000

APY:4.5%

Term:18 months (1.5 years)

Compounding:Monthly

Calculation Results

Formula:A = P(1 + r/n)^(nt)

Monthly Rate:4.5% ÷ 12 = 0.375%

Interest Earned:$1,734

Maturity Value:$26,734

Frequently Asked Questions

What's the difference between APY and interest rate?

APY (Annual Percentage Yield) includes the effect of compounding, while the interest rate is the simple annual rate. APY gives you a more accurate picture of your actual returns. For example, a 4% interest rate compounded monthly has an APY of approximately 4.07%.

What happens if I withdraw my CD early?

Early withdrawal typically results in a penalty, often equivalent to several months of interest. The exact penalty varies by bank and CD term. Some banks may also forfeit all accrued interest. Always check the specific terms before opening a CD.

Are CDs better than savings accounts?

CDs typically offer higher interest rates than savings accounts in exchange for locking up your money for a specific period. Choose CDs if you don't need immediate access to funds and want guaranteed returns. Choose savings accounts for emergency funds or money you might need quickly.