CD Calculator
Calculate the interest earned on a Certificate of Deposit (CD). Enter deposit amount, APY, and term to see your maturity value and total interest.
A Certificate of Deposit (CD) is a low-risk savings account that earns a fixed interest rate in exchange for leaving your money deposited for a set term. CD rates are typically higher than regular savings accounts.
How CD interest is calculated
Most CDs compound daily or monthly. With daily compounding: Final value = Principal × (1 + APR/365)^(days). APY (Annual Percentage Yield) already accounts for compounding frequency, so comparing APYs directly is the easiest way to compare CDs.
CD laddering strategy
Instead of putting all cash in one CD, split it across multiple CDs with different maturities (e.g. 3-month, 6-month, 1-year, 2-year, 3-year). When each matures, reinvest at current rates. This provides regular access to funds while maximizing yield.
Early withdrawal penalties
- Most banks charge 60–180 days of interest for early withdrawal
- No-penalty CDs exist but typically offer lower rates
- Compare the penalty to the yield gain before locking in a long term