CD Calculator

Work out what a certificate of deposit will be worth at maturity: final balance, total interest, and the effective APY for any rate, compounding schedule, and term.

Balance at maturity

$11,411.66

Total interest earned

$1,411.66

APY

4.500%

Assumes interest stays in the CD until maturity, with no early withdrawal. Formula: A = P(1 + r/n)nt. Calculations run in your browser; nothing you type is sent anywhere.

In short

A CD grows by compound interest: final balance = deposit × (1 + rate/n)^(n × years), where n is how often the bank compounds. If the bank quotes an APY, compounding is already baked in and the balance is simply deposit × (1 + APY)^years. This calculator handles both quote styles and shows the interest you actually walk away with at maturity.

How CD interest actually compounds

A certificate of deposit pays compound interest: each time the bank credits interest, the next round of interest is calculated on the bigger balance. The standard formula is A = P(1 + r/n)^(nt): P is your deposit, r the nominal annual rate as a decimal, n the number of compounding periods per year, and t the term in years.

Banks compound daily, monthly, or quarterly depending on the product. The differences are smaller than people expect. On a $10,000 deposit at a 4.5% nominal rate for one year, daily compounding earns $460.25 and monthly compounding earns $459.40, about 85 cents apart. The rate itself matters far more than the compounding schedule, which is exactly why banks advertise APY instead of the nominal rate.

APY vs. APR: which number did your bank give you?

Almost every CD ad in the US quotes an APY (annual percentage yield). APY already includes the effect of compounding; it is defined in Regulation DD (12 CFR 1030, Appendix A) as (1 + r/n)^n − 1, and it is the number banks must disclose under the Truth in Savings Act. If you have an APY, the balance after t years is just P(1 + APY)^t; picking a compounding frequency on top of it would double-count.

The nominal rate (sometimes loosely called APR) is the raw annual rate before compounding. A 4.5% nominal rate compounded monthly works out to a 4.594% APY. This calculator has a toggle for which one you were quoted, so the math matches the disclosure instead of quietly inflating it.

Worked example: $10,000 in a 3-year CD at 4.50% APY

Deposit $10,000 into a 36-month CD paying 4.50% APY. Balance at maturity = 10,000 × (1.045)³ = 10,000 × 1.141166 = $11,411.66, so the CD earns $1,411.66 in interest. Note that it beats the naive 3 × $450 = $1,350 estimate by about $62. That gap is the compounding, interest earning interest in years two and three.

One thing the formula will not tell you: that $1,411.66 is taxable as ordinary income in the years the bank credits it, not when the CD matures. On a multi-year CD you will get a 1099-INT each year even though you cannot touch the money yet.

Early withdrawal penalties change the math

Pull money out before maturity and the bank charges a penalty, most commonly several months of interest (90 days is typical on short CDs, 180 days or more on longer terms; it is set by the bank and printed in the account disclosure). A penalty can eat into principal if you withdraw very early, since it can exceed the interest earned so far.

If there is a real chance you will need the cash, compare the after-penalty result against a high-yield savings account before committing. A CD paying 0.5 percentage points more than a savings account stops being the better deal the moment a 6-month interest penalty lands on it.

What $10,000 grows to at common APYs

APY 1 year 2 years 3 years 5 years
3.0%$10,300.00$10,609.00$10,927.27$11,592.74
4.0%$10,400.00$10,816.00$11,248.64$12,166.53
4.5%$10,450.00$10,920.25$11,411.66$12,461.82
5.0%$10,500.00$11,025.00$11,576.25$12,762.82

Computed as 10,000 × (1 + APY)^years, interest left to compound until maturity.

Frequently asked questions

What is the difference between APY and interest rate on a CD?

The interest rate (nominal rate) is the raw annual rate before compounding. APY is the rate after compounding is included, defined by Regulation DD as (1 + r/n)^n − 1. Banks must disclose APY, so that is almost always the number in the ad. Compare CDs by APY and the compounding schedule stops mattering.

Is CD interest taxed?

Yes. Interest is ordinary income for federal tax in the year the bank credits it to the CD, even if the term has not ended. The bank reports it on a 1099-INT. CDs held inside an IRA follow the retirement account rules instead.

Are CDs FDIC insured?

CDs at FDIC-member banks are insured up to $250,000 per depositor, per bank, per ownership category, the same as checking and savings. Credit union CDs (share certificates) get equivalent NCUA coverage.

What happens when a CD matures?

Most banks give a grace period, commonly around 10 days, to withdraw or move the money. Do nothing and the CD typically auto-renews at the current rate for the same term, which may be far worse than the rate you signed up at. Put the maturity date on your calendar.

Does daily vs. monthly compounding matter much?

Barely. At 4.5% on $10,000 for a year, daily compounding beats monthly by less than a dollar. A 0.1 percentage point difference in APY matters more than any compounding schedule, which is why comparing APY directly is the sane way to shop.

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Built and maintained by Owen Zhang. Formulas verified against the sources above; last reviewed 2026-08-02.