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CD Calculator

Interest · APY · After tax · Early withdrawal penalty

Certificate of deposit
Tax & inflation (optional)
Early withdrawal (optional)

🏦 Enter a deposit, rate, and term to see your CD interest and maturity value.

What Is a CD and What This Calculator Shows

A certificate of deposit (CD) is a savings account that pays a fixed rate for a fixed term, such as 6 months, 1 year, or 5 years. In exchange for the guaranteed rate, you agree to leave the money in place until the CD matures. Withdrawing early usually costs a penalty.

This CD calculator shows how much interest a CD will earn and what it will be worth at maturity. It accepts either the APY a bank advertises or the stated interest rate with a compounding frequency. It then estimates the interest left after income tax, the value in today's dollars after inflation, and what you would receive if you broke the CD early.

A term comparison table, a growth chart, and a schedule show how the balance builds month by month, so you can compare a short CD with a longer one at the same rate before you commit.

CD Interest Formulas

Maturity value from APY

A = P × (1 + APY)^t P = deposit, t = term in years $10,000 × 1.04^1 = $10,400 $10,000 × 1.04^5 = $12,166.53

Maturity value from the interest rate

A = P × (1 + r ÷ n)^(n × t) r = stated rate, n = compounding periods per year

Converting a rate to APY

APY = (1 + r ÷ n)^n − 1 4.00% daily: (1 + 0.04 ÷ 365)^365 − 1 = 4.08%

Early withdrawal penalty

Penalty = P × rate ÷ 12 × months $10,000 × 4% ÷ 12 × 3 = $100

Banks word penalties differently, such as 90 days of simple interest or a percentage of the amount withdrawn. The calculator uses months of simple interest on the deposit, the most common form. Check your account agreement for the exact rule.

CD Earnings by Term

Interest on a $10,000 CD at 4.00% APY. Rates are examples only; compare current offers from your bank or credit union.

TermInterestMaturity value
3 months$98.53$10,098.53
6 months$198.04$10,198.04
12 months$400.00$10,400.00
18 months$605.96$10,605.96
2 years$816.00$10,816.00
3 years$1,248.64$11,248.64
5 years$2,166.53$12,166.53

Effect of compounding on a 4.00% rate

CompoundingAPY
Daily4.0808%
Monthly4.0742%
Quarterly4.0604%
Annually4.0000%
ℹ️
Once you know the APY, compounding frequency no longer changes the yearly result. Always compare CDs by APY.

How to Use the CD Calculator: Worked Example

  1. Enter the deposit. Our example saver puts $10,000 into a CD.
  2. Enter the rate. The bank advertises 4.00% APY, so leave the toggle on APY. If you only know the stated rate, switch the toggle and pick the compounding frequency.
  3. Choose the term. Type the number of months or years, or tap a preset.
  4. Add tax and inflation. The saver is in the 22% federal bracket and assumes 2.5% inflation.
  5. Check early withdrawal. Enter the penalty from the account terms and, if you want, a month to test breaking the CD.

Results for the example

After 12 months the CD is worth $10,400, so it earns $400. At a 22% tax rate, $88 goes to tax and $312 is kept, leaving $10,312. Adjusted for 2.5% inflation, that is about $10,060 in today's dollars, a real return of roughly 0.6% for the year.

With a 3 month penalty, breaking the CD costs $100. Withdrawing after 6 months returns $10,198.04 minus $100, or $10,098.04. Withdrawing after only 2 months returns about $9,965.58, which is less than the original deposit because the penalty is larger than the interest earned so far.

⚠️
Early in the term, a penalty can eat into your principal. Only lock away money you are confident you will not need before maturity.

CD vs High Yield Savings

A CD locks in a rate for the whole term, while a high yield savings account pays a variable rate that can rise or fall at any time. A CD suits money with a known date of use, such as a down payment next year. Savings suits an emergency fund you may need without notice.

  • Choose a CD when you want a guaranteed rate and will not need the money early.
  • Choose savings when you need access, or when rates are likely to rise.
  • Consider a no penalty CD for a fixed rate with free early withdrawal, usually at a slightly lower APY.

Types of CDs

  • Traditional: fixed rate and term with a penalty for early withdrawal.
  • Bump up: lets you raise the rate once or twice if the bank's rates increase.
  • Jumbo: larger minimum deposits, often $100,000, sometimes at a higher rate.
  • Brokered: bought through a brokerage and sold on a secondary market instead of being broken.
  • IRA CD: a CD held inside an individual retirement account.

Building a CD Ladder

A CD ladder splits savings across several CDs with staggered maturity dates. For example, $10,000 could go into five $2,000 CDs maturing in 1, 2, 3, 4, and 5 years. Each year one CD matures; you either use the cash or reinvest it in a new 5 year CD.

After the first few years, every rung earns the longer term rate while one CD still matures every year. This balances higher yields against regular access to your money, and it reduces the risk of locking everything in just before rates rise.

Taxes and insurance

CD interest is generally taxed as ordinary income in the year it is credited, even if it stays in the CD. Banks usually report $10 or more of interest on Form 1099-INT.

CDs at FDIC insured banks are covered up to $250,000 per depositor, per insured bank, for each account ownership category. Credit union certificates have the same limit through the NCUA.

To see how regular deposits grow, try the savings calculator or the compound interest calculator.

Common Mistakes When Comparing CDs

  • Comparing rates instead of APY. Two CDs with the same stated rate can pay different amounts if they compound differently.
  • Ignoring the penalty. A slightly higher APY is not worth it if you are likely to break the CD early.
  • Forgetting taxes and inflation. A 4% CD in a 22% bracket with 2.5% inflation grows your buying power by only about 0.6% a year.
  • Letting the CD renew automatically. Many CDs roll into a new term at the current rate unless you act during the grace period after maturity.
  • Exceeding insurance limits. Spread balances above $250,000 across banks or ownership categories.

Frequently Asked Questions

How is CD interest calculated?
With an APY, maturity value equals deposit × (1 + APY)^years. A $10,000 CD at 4.00% APY for 12 months grows to $10,400. With a stated rate, the bank compounds it n times a year: value = deposit × (1 + rate ÷ n)^(n × years).
What is the difference between APY and APR on a CD?
The stated interest rate ignores compounding, while APY includes it and shows what you earn in a year. A 4.00% rate compounded daily equals about 4.08% APY. US banks must disclose APY under the Truth in Savings rules, so compare CDs by APY.
How much does it cost to withdraw from a CD early?
Penalties are usually a set number of months of interest, often 3 months for short CDs and 6 to 12 months or more for long ones. On $10,000 at 4.00%, 3 months of interest is about $100. Withdrawing very early can reduce your principal.
Is CD interest taxable?
In the United States, CD interest is generally taxed as ordinary income in the year it is credited, even if you leave it in the CD. Banks usually report $10 or more on Form 1099-INT. CDs inside an IRA follow IRA tax rules.
Are CDs safe?
CDs at FDIC insured banks are protected up to $250,000 per depositor, per insured bank, for each ownership category, and credit union certificates have the same NCUA coverage. The main risks are early withdrawal penalties and inflation.

Sources & References

This calculator is for educational purposes only and does not constitute financial advice. Results are estimates based on the information entered. Reference data reviewed: 2026.