CD Calculator

What it does

A certificate of deposit (CD) pays a fixed rate for a fixed term, from a few months to several years, and you agree not to touch the money until it matures. Banks advertise the APY, which already includes compounding, so the balance after one year is simply the deposit plus the APY. If you only know the interest rate, choose how often it compounds and the calculator finds the APY. Interest on a CD is taxed as ordinary income in the year it is credited.

How to use it

1. Type the amount you will deposit and the term of the CD in months.
2. Type the rate and say whether it is the APY or the interest rate; for an interest rate, pick the compounding.
3. Optionally add your tax rate to see what is left after tax on the interest.

The arithmetic runs in your browser. Nothing you type is sent anywhere and nothing is stored, so you can use these with real numbers.

Frequently asked questions

What is the difference between APY and interest rate?
The interest rate is what the bank pays before compounding; the APY is what you really earn in a year once the interest earns interest. A 4.50% rate compounded daily is a 4.60% APY. To compare CDs, compare the APY.

What happens if I withdraw early?
Most banks charge an early withdrawal penalty, usually a few months of interest: often 3 months on CDs of a year or less and 6 to 12 months on longer ones. The penalty can be larger than the interest earned so far and cut into the deposit.

Is my money safe in a CD?
CDs at banks are insured by the FDIC and those at credit unions by the NCUA, up to $250,000 per depositor, per institution, per ownership category.

What is a CD ladder?
Splitting the money into CDs that mature at different times, for example 1, 2, 3, 4 and 5 years. Each year one CD matures, so part of the money is always available, and you can reinvest it at the longest term.

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FDIC — Understanding Deposit Insurance
Investor.gov — Certificates of Deposit