CD Calculator — Certificate of Deposit Earnings
See exactly what a certificate of deposit will earn. Enter the deposit, APY and term to get the maturity value, interest earned and an after-tax estimate, with a year-by-year breakdown.
Value at maturity
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How to use the CD calculator
- Enter the amount you will deposit.
- Enter the APY the bank quotes and the term in months or years.
- Optionally enter your tax rate to see after-tax interest. CD interest is taxed as ordinary income each year.
Understanding CD returns
Banks quote CDs by APY (annual percentage yield), which already includes compounding. That makes the math simple: the balance grows by the APY each year, and partial years grow proportionally. The equivalent APR shows the nominal rate if interest compounds monthly.
CDs pay a fixed rate in exchange for locking up your money. Withdrawing early usually costs a penalty of several months of interest. A CD ladder, spreading money across CDs that mature at different times, keeps some cash available while capturing higher rates on longer terms.
CDs at FDIC-insured banks (or NCUA-insured credit unions) are protected up to $250,000 per depositor, per institution, per ownership category. Compare the APY with a high-yield savings account; if rates are similar, the savings account keeps your money flexible.
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Frequently asked questions
What is the difference between APY and APR?
APR is the nominal yearly rate; APY includes the effect of compounding. CDs are quoted in APY so you can compare them directly.
Is CD interest taxable?
Yes, as ordinary income in the year it is credited, even if you do not withdraw it (unless the CD is in an IRA).
What happens at maturity?
You have a short grace period to withdraw or move the money; otherwise many CDs renew automatically at the current rate.
Are CDs insured?
Yes, up to FDIC or NCUA limits, generally $250,000 per depositor per bank per ownership category.