CD Calculator
Adjust the inputs below. Results update as you type.
How it works
Maturity value = principal × (1 + APY)^years. If given APR with compounding frequency n: APY = (1 + APR/n)^n − 1. Early withdrawal penalties (commonly 90–180 days interest) can erase gains on short-held CDs. FDIC insurance covers up to $250,000 per depositor per institution. Ladder multiple CDs to balance yield and liquidity.
Input guidance
- Principal should be cash you can lock for the full CD term.
- Use APY when available; otherwise convert APR carefully.
- Note early-withdrawal penalties before treating interest as spendable.
The formula
A certificate of deposit grows by compounding: A = P·(1 + r/n)^(n·t), where the rate and term are fixed at purchase, and n is the compounding frequency.
Worked example
A $10,000 CD at 4.5% APY for 3 years grows to about $11,412, earning $1,412 — locked in regardless of later rate changes.
More examples to test
- $25,000 for 12 months at 4.5% APY: maturity value.
- Same CD withdrawn early with a 90-day interest penalty: net outcome.
How to interpret results
CDs trade liquidity for yield. Ladder terms if you may need cash before maturity.
When this can be inaccurate
Promo APYs, compounding conventions, and penalty formulas vary by institution.
Change history
- July 2026: Published CD maturity path with early-withdrawal and FDIC notes.
Site-wide corrections also appear on the corrections log.
Frequently asked questions
What is an early withdrawal penalty?+
Pulling money out before maturity usually forfeits several months of interest, so CDs suit money you will not need until the term ends.
What is APY?+
Annual percentage yield — the effective yearly return including compounding. Comparing APY across CDs is the fairest way to shop.
Are CDs safe?+
Bank CDs are typically insured up to legal limits, making them very low risk, with returns fixed for the term in exchange for locking up the money.
How should I use this result?+
Treat it as a planning estimate. Compare at least two realistic scenarios, then confirm with statements, quotes, or a qualified professional before acting.
How often should I refresh assumptions?+
Refresh whenever rates, income, costs, or policy limits change materially, and before making irreversible commitments.