CD Calculator
What a certificate of deposit or fixed-term deposit is worth at maturity: the interest it earns and its APY.
Result…
How it's calculated
Value = D × (1 + r ÷ n)^(n × t), t = months ÷ 12 (continuously: D × e^(r × t)) APY = (1 + r ÷ n)^n − 1
A certificate of deposit (a fixed-term or time deposit in many countries) locks money away for a set term at a fixed rate. Interest compounds at the bank's frequency and is paid with the deposit at maturity. Compare deposits by APY, which counts the compounding. If the bank quotes only an APY, enter it with annual compounding.
Your numbers, step by step
About the CD calculator
This CD calculator shows what a certificate of deposit, called a fixed-term or time deposit in many countries, is worth when it matures. Enter the deposit, the yearly interest rate, the term in months and how often the bank compounds the interest. It works out the value at maturity, the interest earned, the APY and the total return over the term. The APY is the yearly rate once compounding is counted, which makes it the fair way to compare deposits that compound at different frequencies. The working is shown line by line, so you can check it against the bank's own figures. For savings you keep adding to, use the compound interest calculator.
How to use it
- Enter the “Deposit” you will lock away.
- Enter the “Interest rate” the bank quotes before compounding; if it quotes only an APY, enter that and choose annual compounding.
- Enter the “Term” in months.
- Choose the “Compounding” frequency from the account terms, then read the value at maturity and the APY.
Worked example
10,000 in an 18-month deposit at 4.5% compounded monthly grows to 10,696.95 at maturity: 696.95 of interest, a 6.970% return over the term. The APY is 4.594%, a little above the quoted 4.5% because the interest earns interest each month.
Updated
Questions people ask
How is interest on a CD calculated?
The deposit grows by the rate divided by the compounding periods, once per period, for the whole term: deposit × (1 + rate ÷ n) to the power of n × years.
What is the difference between the rate and the APY on a CD?
The rate is the yearly figure before compounding. The APY counts the interest earned on interest within the year, so it is equal or higher; compare deposits by APY.
Does more frequent compounding make a big difference?
Only a small one. Daily compounding earns slightly more than monthly, but the rate and the term matter far more.
What happens if I take the money out early?
Most deposits charge an early withdrawal penalty, often a number of months of interest, and some do not allow it at all. Penalties vary by bank and country, so check the terms before you open one.
Is the maturity value what I will receive?
It is before tax on the interest and assumes the interest stays in the deposit. Tax rules depend on your country; for your own situation ask the bank or a tax adviser.