CD Interest Calculator
Find the maturity value of a certificate of deposit.
Results update as you type.
This calculator is for illustrative purposes only. Actual rates, fees and terms vary by lender. Consult a qualified financial adviser before making borrowing decisions.
How it works
The maturity value shown here is what a certificate of deposit will be worth when its term ends, based on the amount you deposit and the annual percentage yield the bank guarantees. It matters because a CD locks your money away for a fixed period in exchange for a fixed, known return, so seeing the exact payout upfront lets you compare CDs against savings accounts and decide whether tying up the funds is worthwhile. This CD interest calculator grows the principal by the APY once per year for the length of the term, because the APY already bundles in the bank's compounding frequency and states the true annual growth. Using the APY directly is the right method: it is the single figure that lets you compare offers with different compounding schedules on equal footing, which is exactly why regulators require banks to disclose it. Savers use a CD interest calculator to choose a term, compare rates across banks, and plan for a goal with a known date, such as a down payment or a scheduled expense. Because the rate is fixed, the maturity figure is dependable rather than an estimate — provided you leave the money untouched, since withdrawing early usually triggers a penalty that forfeits some of the interest shown here.
Maturity = principal × (1 + APY ÷ 100)^years
Principal is your deposit and APY is the annual percentage yield the bank guarantees, already reflecting how often it compounds. Dividing APY by 100 turns it into a decimal, and raising (1 + APY) to the number of years grows the deposit by that true annual rate each year. Multiplying the principal by that factor gives the maturity value; subtracting the principal leaves the interest earned. Using APY sidesteps the need to model the compounding schedule separately.
Source:U.S. SEC — Investor.gov
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter deposit amount, apy and term.
- 2
Adjust the options
Fine-tune any options to match your situation.
- 3
Read your result
Maturity value updates instantly as you type — no button to press.
Frequently asked questions
What is the difference between APR and APY?
APY, the annual percentage yield, is the rate you should use for a CD because it includes the effect of compounding and states the true amount your money grows in a year. APR, the annual percentage rate, is a simple rate that ignores compounding and is used mainly for borrowing. Banks quote CDs by APY precisely so savers can compare offers fairly, since two CDs with the same nominal rate but different compounding frequencies have different APYs.
What happens if I withdraw from a CD early?
Most CDs charge an early withdrawal penalty, commonly a set number of months of interest, if you take the money out before the term ends. On a short CD this can wipe out most or all of the interest earned, and in some cases dip into principal. That is why a CD suits money you are confident you will not need until maturity. If access matters, a no-penalty CD or a high-yield savings account may fit better.
Are CDs a safe place to keep money?
Yes, within limits. CDs at banks insured by the FDIC, or at credit unions insured by the NCUA, are protected up to the coverage limit per depositor, per institution, so the principal and earned interest are not at risk of loss. The main trade-offs are locking up the funds for the term and the chance that inflation outpaces the fixed rate, eroding real purchasing power. For insured amounts, a CD carries essentially no risk of losing the money.
Should I choose a long or short CD term?
Longer terms usually pay higher rates but lock your money away longer and expose you to the risk that rates rise while you are committed. Shorter terms pay less but free the funds sooner. A CD ladder — splitting money across several terms that mature at staggered dates — is a common compromise, giving periodic access and a blended rate. Match the term to when you will actually need the money and to your view on where rates are heading.
Does the interest compound automatically?
Within the CD, yes — the APY already reflects the bank's compounding, whether daily, monthly or quarterly, so the maturity figure assumes interest is reinvested inside the CD until the term ends. Some CDs instead pay interest out periodically to a linked account, in which case your balance does not compound and the payout is lower than shown. Check whether your CD compounds or disburses interest, and enter the quoted APY either way for an accurate maturity value.