CD Calculator
The CD Calculator shows how much a certificate of deposit will be worth at maturity. Enter your deposit amount, annual interest rate, and term to see the interest earned and the final payout.
CD maturity
Project what a certificate of deposit earns at a fixed rate.
FAQs
What happens if I withdraw a CD early?
Banks charge an early-withdrawal penalty, typically forfeiting several months of interest, and on short CDs the penalty can eat into your principal. Only put money in a CD that you are confident you will not need before maturity.
Is the CD rate fixed for the whole term?
Yes. The rate is locked when you open the CD and does not change, even if market rates move. That is the appeal: a known return for a known period, with no surprises at maturity.
How it works
A certificate of deposit, or CD, is a fixed-term bank deposit. You agree to leave your money with the bank for a set period, often 6 months to 5 years, and the bank pays you a fixed interest rate in return. The rate is usually higher than a regular savings account because your money is locked in.
The calculator applies the annual rate with compounding to find your maturity value: deposit plus interest earned. It also shows the interest alone, so you can see exactly what the lock-in buys you.
Worked example: deposit $10,000 in a 2-year CD paying 4.5% per year, compounded annually. After two years it is worth $10,000 x 1.045^2 = $10,920.25. The interest earned is $920.25, and that number is guaranteed as long as you hold to maturity.
A shorter example: $5,000 in a 1-year CD at 5% grows to $5,250. Simple, predictable, and free of market swings. The trade-off is liquidity: withdrawing early usually costs you a penalty, often several months of interest.
When comparing CDs, match the term and check the compounding frequency. A 5% rate compounded monthly pays slightly more than the same rate compounded yearly, and the calculator lets you see the difference before you commit.
How a CD Grows Your Money
A CD is one of the simplest investments there is: you lend money to a bank for a fixed time, and the bank pays you fixed interest. There is no market to watch and no statement to decode. At the end of the term, you get your deposit back plus the interest, down to the cent, as the calculator shows.
That certainty is the whole product. A $10,000 CD at 4.5% for two years will be $10,920.25 at maturity whether the stock market soars or crashes. You trade the chance of bigger gains for the guarantee of a known outcome, which makes CDs ideal for money with a fixed purpose and date.
CD Ladders: A Simple Way to Stay Flexible
The classic complaint about CDs is the lock-in: your money is stuck for the whole term. A CD ladder solves this by splitting your deposit across several CDs with staggered maturities. Put $15,000 into three CDs of $5,000 each maturing in 1, 2, and 3 years, for example.
Every year one CD matures and you can spend it or roll it into a new 3-year CD at the current rate. Within a few years all your money earns long-term rates, yet some of it frees up every twelve months. You get higher yields without giving up all access.
CDs vs. Savings Accounts
A high-yield savings account and a CD often pay similar rates, so the choice comes down to flexibility versus certainty. Savings accounts let you withdraw anytime and their rates float with the market. CDs lock your money up but guarantee the rate for the full term.
If rates are falling, a CD wins: your rate stays put while the savings rate drops. If rates are rising, the savings account wins because you are not stuck. And for money you might need soon, an emergency fund belongs in savings, not in a CD with an early-withdrawal penalty.