Enter your initial deposit, annual percentage yield (APY), term length, and compounding frequency to see your CD's ending balance and total interest earned. Add an optional tax rate to calculate after-tax returns. A month-by-month accumulation schedule shows exactly how your certificate of deposit grows over time.
End Balance
--
Total Interest Earned
--
After-Tax Interest
--
After-Tax End Balance
--
Effective APY
--
A Certificate of Deposit (CD) is a savings product offered by banks and credit unions that pays a fixed interest rate for a set period of time, called a term. In exchange for locking in your money for the term, you typically receive a higher interest rate than a regular savings account. Withdrawing early usually incurs a penalty.
CD interest is calculated using compound interest: A = P × (1 + r/n)^(n×t), where P is the principal, r is the annual rate, n is the compounding periods per year, and t is the term in years. For continuously compounded CDs, the formula is A = P × e^(r×t). This calculator handles all compounding methods automatically.
APY (Annual Percentage Yield) reflects the real return on your deposit after accounting for compounding, while APR (Annual Percentage Rate) is the simple stated rate before compounding. A CD with monthly compounding will have a slightly higher APY than its stated APR. Banks are required to disclose APY so you can compare products fairly.
The compound interest you earn depends on your initial deposit, the APY, the term length, and how frequently interest compounds. More frequent compounding (e.g., monthly vs. annually) results in slightly more interest. Use this calculator to see a precise month-by-month breakdown of your balance growth.
Shorter-term CDs (3–12 months) offer more flexibility and are better if you may need access to your funds soon, while longer-term CDs (2–5 years) often lock in higher rates and are ideal for goals further out. Consider CD laddering — spreading deposits across multiple terms — to balance access and yield.
Yes, interest earned on a CD is generally subject to federal and state income taxes as ordinary income, even if you reinvest it or haven't withdrawn it yet. This calculator includes an optional tax rate field so you can estimate your after-tax return. Consult a tax professional for your specific situation.
Most CDs charge an early withdrawal penalty, which is typically a set number of months' worth of interest (e.g., 3–6 months for short-term CDs, up to 12+ months for longer terms). In some cases, the penalty can eat into your principal. Always check your bank's early withdrawal policy before opening a CD.
The End Balance is the total value of your CD at maturity, including your original deposit plus all interest earned. Total Interest shows how much you earned beyond your initial deposit. If you enter a tax rate, the after-tax figures show your real take-home gain. The accumulation schedule breaks this down month by month.