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CD Calculator (Certificate of Deposit)

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A certificate of deposit (CD) locks up your money for a fixed term in exchange for a fixed interest rate — usually higher than a regular savings account, in exchange for reduced access to your funds. Enter your deposit, APY, and term to see what it'll be worth at maturity.

CD Calculator

Live
Value at maturity
$10,696.95
Interest earned
$696.95
Deposit
$10,000.00
Assumes monthly compounding and no early withdrawal.

The CD maturity formula

Maturity value = P × (1 + APY ÷ 12)ᵐ

P is your deposit, APY is the annual percentage yield, and m is the term in months.

Example

$10,000 at 4.5% APY for an 18-month CD: maturity value ≈ $10,696.95, or about $696.95 in interest.

Step-by-step guide

  1. Enter your deposit amount.
  2. Enter the APY the bank or credit union is offering — APY already reflects compounding, unlike a simple interest rate.
  3. Enter the term in months — common CD terms are 6, 12, 18, 24, or 60 months.

Common mistakes

Forgetting the early withdrawal penalty — most CDs charge a fee (often a few months of interest) if you cash out before the term ends.
Confusing the interest rate with APY — always use the advertised APY here, since it already accounts for the compounding frequency.

Frequently asked questions

What happens if I withdraw early?

Most banks charge an early withdrawal penalty, commonly a set number of months' interest, which can eat into or even exceed the interest you've earned so far. Check your specific CD's terms before committing.

Is a CD better than a regular savings account?

CDs often pay a higher rate in exchange for locking up your money. If you might need the funds before the term ends, a high-yield savings account may be more practical despite a potentially lower rate.

Is CD interest taxable?

In the US, CD interest is generally taxable income in the year it's earned or credited, even if you don't withdraw it — check with a tax professional for your specific situation.

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