CD Calculator
Find what a certificate of deposit pays by the end of its term.
| Balance at maturity | $10,500.00 |
|---|---|
| Interest earned | $500.00 |
| APY | 5% |
| Term | 1 year |
How to use it
- Enter the deposit and the rate the bank quotes.
- Banks usually advertise APY, which already includes compounding. If you only have the interest rate, pick APR and the compounding period.
- Enter the term in months (an 18-month CD is 18).
Formula
From APY: balance = P × (1 + APY)^(months ÷ 12)From APR: balance = P × (1 + r ÷ k)^(k × months ÷ 12)APY = (1 + r ÷ k)^k − 1
Example
$10,000 in a 12-month CD at 5% APY is worth $10,500.00 at maturity, so it earns $500.00. If 5% is the APR compounded monthly instead, the APY is 5.116% and the CD earns $511.62.
Questions
What happens if I withdraw early?
Most CDs charge an early withdrawal penalty, often several months of interest. Check the bank's disclosure.
Is CD interest taxable?
Usually yes, as ordinary income in the year it is credited, even if you don't withdraw it, unless the CD is in an IRA.
Is my CD insured?
CDs at FDIC-insured banks and NCUA-insured credit unions are covered up to the standard limits.
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Last reviewed 2026-10-11. Found a mistake? Tell us.