Certificate of Deposit (CD) Calculator
Calculate the maturity value, interest earned, and APY of a certificate of deposit based on term and compounding frequency.
Results
What is it?
A Certificate of Deposit (CD) is a time deposit offered by banks with a fixed interest rate and maturity date. This calculator computes the maturity value, total interest earned, and the APY (Annual Percentage Yield) which accounts for compounding frequency.
How to use
Enter the deposit amount, the advertised annual interest rate, choose a term length, and select the compounding frequency (daily compounding is most common). The calculator shows what you receive at maturity and the effective APY.
Example scenario
A $10,000 CD at 5% annual rate for 12 months with daily compounding yields $10,512.67 at maturity — earning $512.67 in interest. The APY is 5.127%, slightly higher than the stated 5% rate due to daily compounding.
Pro tip
Build a CD ladder: spread deposits across 1, 2, 3, 4, and 5-year CDs. As each matures, reinvest into a 5-year CD to capture higher long-term rates while maintaining annual liquidity. Compare APY (not APR) when shopping for CDs.