CalcArcade.

CD Calculator

Enter the deposit, the rate, the term in months and how often interest is compounded. You get the ending balance, the interest earned and the APY.

Your numbers

Result

Estimate for information only, not professional advice. Last reviewed .

How we calculate it

With a yearly rate r compounded m times a year, the balance after t years is Deposit × (1 + r ÷ m)^(m × t). The APY is (1 + r ÷ m)^m − 1, the real yearly yield. If you enter an APY, the balance is Deposit × (1 + APY)^t.

For example, 10,000 at 5% compounded monthly for 5 years grows to 12,833.59 and the APY is 5.12%. Compounded daily it grows to 12,840.03 and the APY is 5.13%.

Assumptions and limits

  • Banks usually advertise the APY. If you only have the APY, choose that option and the compounding box is not needed.
  • There is no early withdrawal penalty, tax or fee in the result. A penalty can cancel a large part of the interest.
  • The rate is fixed for the whole term, as for a standard CD.

Frequently asked questions

What is APY?

APY is the annual percentage yield, the interest you actually earn in a year including compounding. A 5% rate compounded monthly has an APY of 5.12%.

Does compounding more often matter?

Yes, but only a little. On 10,000 at 5% for 5 years, yearly compounding gives 12,762.82 and daily compounding gives 12,840.03.

Are CD earnings taxed?

Interest is generally taxable income in the year it is earned or credited, even if it stays in the CD. This calculator shows the amount before tax.

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Worked example (a fixed example using the starting numbers, it does not change as you type)

Inputs: Deposit = 10000; Rate (%) = 5; Term (months) = 60; The rate is an = APR (interest rate before compounding); Compounded = Monthly.

  • Ending balance $12,833.59
  • Interest earned $2,833.59
  • APY 5.12%

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Last reviewed: . Formulas and assumptions are described on our methodology page. For information only; not professional advice.