CD Calculator
What a certificate of deposit is worth at maturity from a quoted APY or a nominal rate, the APY a nominal rate gives, the early withdrawal penalty and a ladder.
Result
Value at maturity: $10,920.25
Before tax on the interest. Rates and penalty terms are the bank’s; check the account disclosure.
- Interest earned
- $920.25
- Annual percentage yield
- 4.5%
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Results are arithmetic on the returns, rates and horizons you enter, not a forecast and not investment, tax or retirement advice. The site supplies no expected return, inflation rate, contribution limit, tax rate or withdrawal rate. Real returns vary from year to year, and fees, taxes and the order of returns all change the outcome. Check anything that matters with a qualified adviser. Read the full disclaimer
How to use the CD Calculator
- Enter the deposit and the rate, and say whether the bank quotes it as an APY or as a nominal rate with a compounding frequency.
- Enter the term in months, and optionally the early withdrawal penalty in months of interest.
- Read the value at maturity, the interest, and the APY, which is the figure to compare between banks.
The formulas
from an APY value = deposit × (1 + APY)^(months ÷ 12)from a rate r value = deposit × (1 + r ÷ m)^(m × months ÷ 12)APY = (1 + r ÷ m)^m − 1where m is the number of times a year interest compounds. In the US, Regulation DD defines how banks must calculate and state the annual percentage yield, which is why the APY is the reliable figure for comparing deposits. Daily compounding here uses a 365-day year.
The penalty
The penalty is entered as months of interest, the way banks usually state it, and costed as simple interest on the deposit at the quoted rate. Check the bank’s own terms: some charge on the amount withdrawn, some on the whole deposit, and some can take the penalty out of the principal if too little interest has been earned.
The ladder
A ladder here divides the deposit evenly across the number of rungs you choose, with terms stepping up evenly to the term you entered, all at the same rate. In practice longer CDs often pay more, so check each rung’s rate.
With your numbers
- APY 4.5%: $10,000.00 × (1 + APY)^(24 ÷ 12) = $10,920.25
Quick reference
Before tax on the interest. Rates and penalty terms are the bank’s; check the account disclosure.
| Example | Value at maturity |
|---|---|
| 10,000 at 4.5% APY for 24 months | $10,920.25 |
| 4.5% nominal, monthly | $10,939.90 |
| 4.5% nominal, daily | $10,941.68 |
| 4.5% nominal, annually | $10,920.25 |
| With a 6-month penalty | $10,920.25 |
| 20,000 in a five-rung ladder | $24,923.64 |
Common questions about the CD Calculator
- What is the difference between APY and the interest rate?
- The interest rate is the nominal annual rate; the APY is what you actually earn in a year once compounding is counted. 4.5% compounded monthly is an APY of 4.5940%; compounded daily, 4.6025%. Compounded once a year, the two are the same. Compare accounts by APY.
- How much does the early withdrawal penalty cost?
- Banks usually charge a number of months of interest. Six months of interest on 10,000 at 4.5% is 225. If you might need the money early, weigh that against the extra rate a longer CD pays; a penalty can turn a better rate into a worse result.
- What is a CD ladder?
- Splitting a deposit into several CDs that mature at different times, so part of the money becomes available regularly. Split 20,000 into five CDs of 4,000 maturing yearly up to five years, and one comes due every year. The page lists each rung in the worked steps.
- Is the interest taxed?
- In most places, yes, as ordinary income in the year it is credited, even if it stays in the CD. This page shows interest before tax.