Project your total interest earnings and final balance at maturity.
Use this free tool to calculate the return on a Certificate of Deposit (CD). Simply enter your deposit amount, term length, and Annual Percentage Yield (APY) to see exactly how much your money will grow. Compare current CD rates across terms to find the best APY for your timeline.
Certificate of Deposit Calculator
Project your earnings with a fixed-rate CD.
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How a CD Calculator Works
A Certificate of Deposit (CD) is a secure, time-deposit account offered by banks and credit unions. When you open a CD, you agree to leave a lump sum of money in the account for a set period, known as the term.
This calculator determines your total return at maturity using the compound interest formula. Unlike variable-rate savings accounts, standard CDs have fixed rates, meaning your APY is guaranteed for the entire term of the CD.
CD Calculator Definitions
How to Use the CD Calculator
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Enter your initial deposit
Type in the lump sum you plan to invest in the CD. Most banks have minimum deposits of $500 to $1,000 for standard CDs, though jumbo CDs may require $100,000 or more.
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Set the CD term
Choose the length of time you'll keep the money locked up. Common options are 3, 6, 12, 24, 36, 48, or 60 months. Longer terms typically offer higher APYs — for example, 60-month CD rates are usually 0.50% to 1.00% higher than 12-month rates.
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Enter the APY
Use the rate you've been quoted by the bank. Top nationally-available CDs in 2025 are running roughly 4.25% to 5.00%. The APY already accounts for compounding, so this is the apples-to-apples number to compare across banks.
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Choose your compounding frequency
Most CDs compound daily, but some compound monthly or quarterly. The difference is small for short terms but adds up modestly for longer ones. The calculator shows your final balance at maturity along with total interest earned.
Frequently Asked Questions
What happens if I withdraw my money early?
If you withdraw funds from a CD before the maturity date, banks typically charge an "Early Withdrawal Penalty." This penalty is often equal to a certain number of months' worth of interest — usually 3 months for short-term CDs and up to 12 months for 5-year CDs. Use the early withdrawal penalty calculator to estimate the exact dollar cost.
Are CD rates fixed?
Yes, standard CDs have fixed rates. This means your APY is locked in when you open the account and will not change, providing guaranteed returns regardless of what happens to market interest rates afterward. This is the main advantage of a CD over a high-yield savings account — rate certainty.
Is my money safe in a CD?
Yes. CDs at FDIC-insured banks are insured up to $250,000 per depositor, per insured bank, per ownership category. Credit union CDs (sometimes called share certificates) get equivalent NCUA insurance. If you have more than that to invest, spread it across multiple banks to keep all of it covered.
What's the difference between APY and interest rate on a CD?
The interest rate is the raw rate the bank pays. APY (Annual Percentage Yield) accounts for compounding within the year. On a 5.00% interest rate CD compounding daily, the APY is roughly 5.13% — that 0.13% bump comes from earning interest on your interest. Always compare CDs by APY, not by raw interest rate.
Should I open a CD or a high-yield savings account?
It depends on whether you need access to the money. CDs typically offer 0.25% to 1.00% higher APY than HYSAs at the same bank, but you pay a penalty for early withdrawal. If the money is genuinely earmarked for a future date and you can resist touching it, CDs win on yield. The CD vs. HYSA comparison can show you the dollar difference for your specific scenario.
What's a CD ladder and how does it work?
A CD ladder spreads your money across multiple CDs with staggered maturity dates — for example, five $10,000 CDs maturing in 1, 2, 3, 4, and 5 years. As each CD matures, you reinvest into a new long-term CD. This gives you regular access to a portion of your money each year while still capturing the higher long-term yields. Read about the CD laddering strategy for a deeper walkthrough.
Are CDs a good investment in a high-rate environment?
Yes, when rates are at or near a peak, CDs let you lock in those high rates before the Fed cuts. The downside is the opposite: if rates rise after you open the CD, you're stuck with the lower rate or pay a penalty to break it. In falling-rate environments, CDs are particularly valuable; in rising-rate environments, an HYSA captures the increases automatically.
Will the bank send me my interest each month?
It depends on the CD. Some CDs allow you to receive interest payments monthly or quarterly via direct deposit, which can supplement income but means the interest doesn't compound inside the CD. Most CDs default to "compounding interest" where the earnings stay in the account and grow until maturity. Pick whichever fits your needs — interest payouts work well for retirees needing supplementary income.
