Calculate the maturity value and total interest earned on a Certificate of Deposit (CD) based on principal, rate, term and compounding frequency.
Google AdSense Banner
This area will contain advertisements after approval.
Google AdSense Banner
This area will contain advertisements after approval.
This uses the standard compound interest formula: Maturity Value = Principal × (1 + rate/m)^(m×years), where m is the number of compounding periods per year. Unlike a savings account, a CD locks in your rate and term, with a fixed deposit and no further contributions.
This calculator assumes you hold the CD to maturity. Withdrawing early typically triggers a penalty, often a forfeiture of some months of interest, which isn't reflected here. Check your CD's specific terms before committing funds you might need early.
A $10,000 deposit at 4.5% APY, compounded monthly, over a 12-month term: maturity value = $10,000 × (1 + 0.045/12)^(12×1) = $10,459.40, for $459.40 in total interest earned by the time the CD matures, on a fixed deposit with no further contributions along the way.
Withdrawing before maturity and being surprised by the early withdrawal penalty, which this projection doesn't subtract since it assumes the CD is held to term.
Letting a CD auto-renew at a lower rate after maturity without checking current market rates first, many banks default to an unremarkable renewal rate.
Comparing a CD's stated rate to a savings account's APY without checking whether both are being quoted on the same basis (APY vs simple nominal rate).
A CD locks your money in for a fixed term at a fixed rate, usually higher than a regular savings account, in exchange for reduced access. Withdrawing before the term ends typically incurs a penalty.
It has a modest effect, more frequent compounding (daily vs annually) yields slightly more interest at the same stated rate, but the difference is usually small compared to the rate itself.
Savings Interest Calculator
Project your savings account balance including monthly deposits and tax on interest earned.
APY Calculator
Calculate the effective Annual Percentage Yield from a nominal interest rate and compounding frequency.
Google AdSense Banner
This area will contain advertisements after approval.