CD Calculator
Calculate the maturity value, interest earned, and APY on a certificate of deposit from rate, term, and compounding frequency.
Independently verified for accuracy
Calculator by Toolsloft ↗- Maturity value
- 10939.9
- Interest earned
- 939.9
- APY (%)
- 4.59
This calculator shows what a certificate of deposit will be worth at maturity from your deposit, the interest rate, the term, and how often interest compounds. It also reports the annual percentage yield so you can compare CDs on equal footing. Use it to check a bank quote or to compare offers with different compounding.
How this is calculated
Maturity value uses the compound interest formula, A = P(1 + r/n)^(n*t), where r is the annual rate as a decimal, n is the number of compounding periods per year, and t is the term in years. APY is (1 + r/n)^n - 1, the effective annual yield.
How to use
- Enter your deposit amount and the interest rate.
- Enter the term in years and how many times a year interest compounds.
- Read the maturity value, interest earned, and APY.
Examples
- $10,000 at 4.5% for 2 years, monthly:
matures to $10,939.90 - $25,000 at 5% for 1 year, quarterly:
matures to $26,273.63
FAQ
- What is the difference between the rate and the APY?
- The rate is the nominal annual rate before compounding. APY is the effective yield after compounding, so it is slightly higher. Comparing CDs by APY is the fair way to compare offers.
- How does compounding frequency affect the result?
- More frequent compounding earns a little more, because interest starts earning interest sooner. Daily compounding beats monthly, which beats quarterly, for the same nominal rate.
- Does this account for early withdrawal penalties or taxes?
- No. It shows the gross value at maturity. Cashing out early usually forfeits some interest, and CD interest is generally taxable in the year it is earned.