CD Interest Calculator — Certificate of Deposit Returns
Calculate how much interest you can earn with a certificate of deposit. Enter your deposit, APY, term length, and compounding frequency to see your maturity balance.
A certificate of deposit, or CD, is one of the safest places to park your cash. When you open a CD, you agree to leave your money with the bank for a set period, known as the term. In exchange, the bank pays you a fixed interest rate that is usually higher than what you would earn in a regular savings account. CDs are insured by the FDIC up to applicable limits, making them a low-risk option for conservative savers.
Our CD interest calculator helps you estimate how much your certificate of deposit will be worth at maturity. Enter your initial deposit, the annual percentage yield offered by the bank, the length of the CD term in years, and how often interest compounds. The calculator will show your total balance at maturity, how much interest you earned, and a year-by-year breakdown of your CD growth.
Keep in mind that CDs usually penalize you for withdrawing money before the term ends. Because of this, they work best for money you will not need during the CD term. Many people use CDs for goals that are one to five years away, such as a future home purchase, a wedding, or a planned vacation. Laddering CDs, or opening several CDs with staggered maturity dates, is a popular strategy to maintain some flexibility while locking in higher rates.
Total Balance
$0
Total Contributions
$0
Total Interest Earned
$0
Growth Chart
Year-by-Year Breakdown
| Year | Balance | Contributions | Interest |
|---|
CD Investing Tips
- Compare APYs: Rates vary widely between banks, especially online banks.
- Check penalties: Understand early withdrawal penalties before committing.
- Consider CD laddering: Stagger maturity dates to balance rates and liquidity.
- Keep emergency funds elsewhere: CDs are not ideal for money you might need quickly.
- Reinvest at maturity: Decide in advance whether to renew or move the funds.
Compare CD Options
Shop for competitive CD rates at Marcus by Goldman Sachs , Ally Bank , Fidelity , and Charles Schwab .
Frequently Asked Questions
What is a certificate of deposit?
A certificate of deposit, or CD, is a savings product that pays a fixed interest rate for a fixed term. You agree to leave your money in the account until the CD matures.
How is CD interest calculated?
CD interest is calculated using your deposit amount, annual percentage yield, compounding frequency, and term length. Most CDs compound daily or monthly.
Are CDs a good investment?
CDs are a safe option for money you cannot afford to lose and do not need immediate access to. They typically offer higher rates than regular savings accounts but lower long-term returns than stocks.