Bar chart
Finance
CD Rate Calculator
Estimate maturity value, interest earned, and maturity date from APY, term, and start date.
Term unit
Term value must be a whole number.
Maturity Date
Jul 28, 2027
Investment Summary
Maturity Value
$10,425.00
Interest Earned
$425.00
Yield chart
Bar and pie breakdowns.
Pie chart
Principal versus interest at maturity.
Maturity value
$10,425
Chart values are rounded to cents.
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About this calculator
Method, formulas, and limits.What this does
Estimates the maturity value and total interest earned on a Certificate of Deposit (CD) based on your initial deposit, APY, term length, and start date. It also projects how your balance grows over the term and shows the exact maturity date.
Who it is for
Anyone comparing CD offers from different banks or credit unions. Useful for savers who want to see exactly how much a CD will return before locking in their money for a fixed term.
How it works
The calculator compounds interest monthly using your entered annual percentage yield (APY). It multiplies your deposit by (1 + APY/12)^(number of months) to determine the ending balance, then subtracts the original deposit to show total interest earned. The maturity date is calculated by adding the term to your start date and adjusting for month-end boundaries.
Limitations
Does not account for early withdrawal penalties, taxes on interest income, or bank-specific compounding schedules. Assumes the CD is held to full maturity with no additional deposits.
Key calculations
- Monthly Compounding
- The balance grows each month using the monthly periodic rate. balanceAfterNMonths = deposit × (1 + APY/12)^(termInMonths)
- Interest Earned
- Total interest is the ending balance minus the original deposit. interest = maturityValue − deposit
- Maturity Date
- Add the term length to the start date, adjusting for month-end boundaries so the date is always valid. maturityDate = startDate + term, clamped to valid calendar dates.
Reference ranges
- Short-Term CDs (3–12 months)
- Typically offer lower APYs but more liquidity. Commonly used for emergency funds or money needed in the near future. Rates are often 1–3% below longer-term CDs.
- Medium-Term CDs (1–3 years)
- Often offer the best balance of rate and term length. This range typically has the most competitive APYs from online banks and credit unions.
- Long-Term CDs (3–5 years)
- Usually offer the highest APYs but lock up your money the longest. Rate changes during the term do not affect your locked-in APY.
How to use it
- 1.Enter your deposit amountInput the amount you plan to deposit into the CD. This is the principal that will earn interest over the term.
- 2.Set the APYEnter the annual percentage yield offered by the bank or credit union. The calculator compounds interest monthly at this rate.
- 3.Choose the term lengthSelect the CD term in months. Common terms range from 3 months to 5 years (60 months).
- 4.Pick a start dateChoose the date you expect the CD to be opened or funded. The calculator uses this to determine the exact maturity date.
- 5.Review the resultsThe calculator shows the maturity value, total interest earned, and a month-by-month growth chart. Compare different APY and term combinations to find the best option.
APY stands for annual percentage yield and represents the real rate of return including the effect of compounding interest. Unlike a simple interest rate, APY lets you compare CDs with different compounding schedules (daily, monthly, quarterly) on an equal basis because it standardizes the return to a one-year period.
The calculator adds your CD term in months to the start date you provide. When the resulting date falls on an invalid calendar day — for example, adding 1 month to January 31 would give February 31 — the date is adjusted backward to the last valid day of the target month so the maturity date is always correct.
No. The calculator assumes the CD is held to full maturity and does not subtract any early withdrawal penalties, which vary by bank and typically range from 3 to 12 months of interest. It also does not account for taxes on interest income, which you would report on your annual tax return.
APY (annual percentage yield) includes the effect of compounding and shows what you actually earn, while APR (annual percentage rate) is a simple rate that does not include compounding. For savings products like CDs, APY is always the more useful number because it reflects the true return.
CDs typically offer higher APYs than regular savings accounts because you agree to lock up your money for a fixed term. High-yield savings accounts offer more flexibility to withdraw at any time but usually pay lower rates. Online banks often offer competitive rates in both categories.
Early withdrawal triggers a penalty that varies by bank and term length. Common penalties range from 3 months of interest for short-term CDs to 12 months of interest for long-term CDs. Some banks offer no-penalty CDs that allow early withdrawal without a fee, though they typically pay a lower APY.
CD interest is taxed as ordinary income at your marginal federal income tax rate, plus any applicable state and local taxes. You will receive a 1099-INT form from the bank if the interest earned exceeds $10 in a tax year. The calculator does not model tax implications.
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