Interest Earned
$778.79
Certificate of Deposit (CD) Calculator
Calculate maturity value and interest earned on a CD.
Maturity Value
$10,778.79
Term
18 months
Effective Annual Yield (APY)
5.13%
Total Return over Term
7.79%
How to use the Certificate of Deposit (CD) Calculator
The Certificate of Deposit (CD) Calculator is free and runs entirely in your browser — no sign-up, and nothing you enter leaves your device. It opens pre-filled with a realistic example, so you can see how it works before replacing any figure with your own; the results update as you type. Press Calculate to refresh the result panel, or Reset to return to the example.
The inputs it asks for:
- Deposit Amount — a dollar amount.
- Nominal Annual Interest Rate — a percentage (enter 6 for 6%).
- Term (Months) — a number.
- Compounding — choose one — Daily, Monthly, Quarterly, Annually.
The formula
A CD pays compound interest at a fixed rate for a fixed term. The maturity value is the standard compound-interest formula:
Maturity = Deposit · (1 + r/n)^(n · t)- r
- the nominal annual interest rate
- n
- compounding periods per year (daily = 365, monthly = 12)
- t
- the term in years (months ÷ 12)
APY restates all of this as a single effective annual rate, so two CDs with different compounding can be compared on one number. See the effective rate calculator.
Worked example
Using the example values — Deposit Amount $10,000.00, Nominal Annual Interest Rate 5%, Term (Months) 18, Compounding Daily — the Certificate of Deposit (CD) Calculator returns a Maturity Value of $10,778.79. It also reports Interest Earned ($778.79), Term (18 months), Effective Annual Yield (APY) (5.13%).
Prefer your own numbers? Change any field above and this recomputes instantly.
Key terms
- APY
- Annual percentage yield — the effective yearly return once compounding is counted.
- Term
- How long your money is locked in, from a few months to several years.
- Compounding
- How often earned interest is added back to the balance to itself earn interest.
- Early-withdrawal penalty
- Interest forfeited if you cash out a CD before it matures.
Frequently asked questions
What's the difference between the rate and the APY?
The rate is the headline nominal figure; the APY folds in compounding, so it's slightly higher and is the number to compare across banks.
Is CD interest taxed?
Yes — CD interest is taxable in the year it's credited, even if the CD hasn't matured, and is reported on a 1099-INT.
What happens if I withdraw early?
Most CDs charge an early-withdrawal penalty of several months' interest, which this calculator does not deduct. Check the specific CD's terms.