CD (Certificate of Deposit) Calculator

This calculator helps you find out how much your Certificate of Deposit (CD) will be worth at the end of its term. Enter your initial deposit, interest rate (APR), term length, and how often the interest is compounded.

Your CD Growth

Enter your CD details above and click "Calculate".

Understanding Your CD Investment

Our CD calculator is a powerful tool designed to give you a clear picture of your potential earnings from a Certificate of Deposit. By understanding the key terms and how they interact, you can make more informed financial decisions.

What is a Certificate of Deposit (CD)?

A Certificate of Deposit, or CD, is a type of savings account offered by banks and credit unions. It holds a fixed amount of money for a fixed period, such as six months, one year, or five years. In exchange for you agreeing not to withdraw the funds until the term ends (the "maturity date"), the financial institution pays you interest at a fixed rate, which is typically higher than that of a standard savings account.

How to Use This CD Calculator

Initial Deposit: Enter the principal amount you plan to invest in the CD.
Annual Interest Rate (APR): This is the stated annual interest rate for the CD.
Term Length (in Months): Enter the total duration of the CD term in months (e.g., 12 for a 1-year CD, 60 for a 5-year CD).
Compound Frequency: Select how often the bank or credit union calculates and adds interest to your account. More frequent compounding leads to slightly higher earnings.

Understanding APY (Annual Percentage Yield) vs. APR

One of the most valuable outputs of this calculator is the APY. While APR is the simple interest rate, APY represents the real rate of return on your investment, because it takes the effect of compound interest into account. If your interest is compounded more than once a year, your APY will be higher than your APR. APY is the best metric for comparing different CD products.

Why Does Compound Interest Matter?

Compound interest is the interest you earn on both your original principal and the accumulated interest from previous periods. It's often called "interest on interest" and is what allows your investment to grow at an accelerating rate. The more frequently interest is compounded (e.g., daily vs. annually), the greater the effect of compounding, and the more you'll earn over the CD's term. Our calculator shows this by calculating both the final balance and the total interest, helping you visualize the power of compounding.