Calculate the maturity value of a Certificate of Deposit
A Certificate of Deposit (CD) calculator estimates the maturity value of your fixed-term deposit based on the principal, interest rate, term length, and compounding frequency. CDs offer a safe, guaranteed return, making them a popular choice for conservative savers.
CDs are an excellent option for those looking to earn higher interest rates than traditional savings accounts while maintaining FDIC insurance protection. By locking in your money for a fixed term, you are guaranteed a specific return regardless of market fluctuations, making CD investing one of the most predictable ways to grow your savings.
Use this CD calculator to compare different term lengths and compounding frequencies side by side. You can see exactly how much interest your deposit will earn at maturity and evaluate whether a short-term or long-term CD best fits your financial timeline and goals.
The CD calculator uses the compound interest formula A = P(1 + r/n)^(nt) for compounding CDs. For simple-interest CDs, interest is calculated as I = P × r × t and added at maturity.
APY (Annual Percentage Yield) reflects the true annual return including the effect of compounding. It is typically higher than the stated interest rate when compounding occurs more than once per year.
Most CDs charge an early withdrawal penalty, usually several months of interest. This calculator assumes you hold the CD to full maturity.
More frequent compounding increases your effective yield. A CD that compounds daily will earn slightly more than one compounding monthly or annually at the same stated interest rate, which is reflected in the APY.
APY (Annual Percentage Yield) includes the effect of compounding and shows your true annual return. APR (Annual Percentage Rate) is the simple stated rate without compounding. For CDs, the APY is almost always higher than the stated rate.
CD rates are influenced by the federal funds rate set by the Federal Reserve, bank competition for deposits, and the term length. Generally, longer terms offer higher rates, though this is not always the case in certain economic environments.