Balance over the term
| After | Interest so far | Balance |
|---|
Assumes a fixed rate for the whole term, interest left in the account to compound, and no fees or taxes. Penalty rules vary by bank; check your account terms. For education only, not financial advice.
What this CD calculator does
This CD calculator shows how much interest a certificate of deposit (CD) or fixed deposit will earn. Enter your deposit, rate and term, and it shows:
- the interest earned over the term
- your balance at maturity
- the average interest per month
- the effective yearly yield (APY)
- an example early withdrawal penalty, based on the months of interest your bank charges
A table shows how your balance grows over the term.
How to use it
- Deposit amount: how much you'll put in the CD.
- Interest rate and rate type: banks usually quote an APY, which already includes compounding. If you have an interest rate (APR) instead, choose that option and pick the compounding frequency: daily, monthly, quarterly or annually.
- Term: the length of the CD in months, for example 6, 12, 36 or 60.
- Early withdrawal penalty: how many months of interest your bank charges if you take the money out early.
The formula
Balance at maturity = deposit × (1 + APY)^(months ÷ 12)
If you have an interest rate instead of an APY:
APY = (1 + rate ÷ n)^n − 1, where n is the number of compounding periods per year.
Example: $10,000 in a CD
| Term | At 4% APY | Interest earned |
|---|---|---|
| 12 months | $10,400.00 | $400.00 |
| 36 months | $11,248.64 | $1,248.64 |
| 60 months (at 4.5% APY) | $12,461.82 | $2,461.82 |
A 4% rate compounded monthly is an APY of about 4.07%, earning about $407 a year on $10,000. Compounded daily, about 4.08%, or $408. The more often interest compounds, the more you earn, but the difference is small.
APY vs interest rate
- The interest rate (or APR) is the base rate before compounding.
- The APY includes the effect of compounding over a year.
When comparing CDs, compare the APY, because it shows what you'll actually earn in a year.
Is a CD right for your money?
CDs can suit money you won't need for a set period, such as savings for a home deposit in two years. They usually pay a fixed rate, which protects you if rates fall.
But your money is locked in until the CD matures. For money you might need at short notice, such as an emergency fund, an instant-access savings account is usually better. See how to build an emergency fund.
CD ladders: splitting your money across CDs with different maturity dates, for example 1, 2 and 3 years, gives you regular access to part of your savings while still earning fixed rates.
Frequently asked questions
How much interest does a $10,000 CD earn in a year?
About $400 at a 4% APY, or $450 at 4.5%.
Is interest on a CD compounded?
Usually, yes, often daily or monthly. The APY already reflects this.
What happens if I withdraw early?
Most banks charge a penalty, often a set number of months of interest. Check your account terms before opening a CD.
Is my data saved?
No. The calculator runs in your browser, and nothing you enter is stored.
Related tools and guides
- Compound interest calculator
- Savings goal calculator
- Monthly return on a $50,000 investment
- All free money calculators
This calculator is for education only and is not financial advice. Rates, compounding and penalties vary by bank. Interest may be taxable.