CD Calculator

A CD earns compound interest: each period the interest is added to your balance and the next period's interest is figured on the larger balance. Banks advertise the APY (annual percentage yield), which already rolls compounding into a single effective yearly rate — so your maturity value is simply your deposit × (1 + APY) raised to the number of years. Enter your deposit, APY, and term above to see the exact figure.

The interest rate (or nominal rate/APR) is the base rate before compounding. The APY is the effective rate after compounding is applied over a year, so it's always equal to or higher than the nominal rate. Because APY already accounts for how often the CD compounds, comparing CDs by APY is the apples-to-apples way to shop — this calculator shows both and converts between them.

At a 5.00% APY, a $10,000 CD earns about $500 in the first year, roughly $1,038 over two years, and about $2,763 over five years as interest compounds on interest. The exact amount depends on the APY and term — enter your own numbers above to see the maturity value and total interest.

Cashing a CD before maturity usually costs an early-withdrawal penalty stated as a set number of months of interest — commonly about 90 days of interest on terms under a year, 180 days on 1–4 year terms, and up to 365 days on longer CDs. If you withdraw early enough that the penalty is larger than the interest you've earned, it can eat into your principal. The early-withdrawal panel above estimates your net proceeds.

A CD makes sense for money you won't need until a known date: it locks in a fixed APY (protecting you if rates fall) and is FDIC- or NCUA-insured up to $250,000. The trade-offs are that your money is tied up until maturity and the rate won't rise if market rates climb. Compare the guaranteed maturity value here against a high-yield savings account, which stays liquid but has a variable rate.

A CD ladder splits your money across several CDs with staggered maturities — for example five equal deposits maturing in 1, 2, 3, 4, and 5 years. One CD matures every year, giving you regular access to cash, while the longer rungs capture higher long-term rates. As each short CD matures you roll it into a new long-term rung, keeping the ladder going. Use the CD ladder builder to see the blended yield.

Yes. Interest from a CD is taxed as ordinary income in the year it's credited, even if you don't withdraw it, and the bank reports it on Form 1099-INT once it reaches $10. Interest on a multi-year CD is generally taxed each year as it accrues. This calculator shows pre-tax figures; your after-tax return depends on your marginal tax bracket.

No — it's a private, in-browser calculator with no live rate feed, so nothing you enter leaves your device. The term pages are pre-filled with a sample APY for illustration only; enter the actual APY your bank or credit union quotes to get an accurate maturity value.