About the CD Calculator
A certificate of deposit, or CD, is a savings product where you lock money away for a fixed term in return for a set interest rate. This CD calculator shows what a deposit will be worth at maturity. Enter the amount, the yearly rate, the term in months and how often the bank compounds interest, and it gives the ending balance, the interest earned and the annual percentage yield (APY), which accounts for compounding. An optional tax rate shows the interest and balance after tax. It is useful for comparing offers from different banks or choosing between terms.
Updated October 2026
How to use the CD Calculator
- 1Enter the amount you will deposit.
- 2Enter the yearly interest rate the bank quotes.
- 3Enter the term in months and choose how often interest is compounded.
- 4Optionally enter a tax rate on the interest.
- 5Read the ending balance, interest earned and APY.
Comparing offers
Always compare APY rather than the headline rate, because APY includes compounding. Then compare terms: a longer term usually pays more but locks your money away for longer. If you expect rates to rise, a shorter CD or a ladder can help. A CD ladder splits your money across several terms, such as 6, 12, 18 and 24 months, so some of it matures regularly.
Things to check before opening a CD
- The early withdrawal penalty
- Whether interest is paid out or added to the balance
- What happens at maturity: many CDs renew automatically
- Deposit insurance limits in your country
- Minimum deposit requirements
Other tools
The FD Calculator is built for fixed deposits in rupees, the Compound Interest Calculator shows growth with regular contributions, the Effective Interest Rate Calculator converts between nominal rate and APY, and the Inflation Calculator shows what your return is worth after rising prices. This tool does arithmetic only and is not financial advice.
Features
- Ending balance at maturity
- Interest earned over the term
- APY calculated from the rate and compounding
- Daily, monthly, quarterly, six-monthly or yearly compounding
- Terms from 1 to 1,200 months
- Optional tax on interest
- Runs in your browser
Frequently asked questions
How do I calculate CD interest?
Multiply the deposit by (1 plus the rate divided by compounding periods per year) raised to the number of periods in the term. A 10,000 deposit at 5 percent compounded monthly for 12 months grows to about 10,511.62, so the interest is 511.62.
What is the difference between interest rate and APY?
The interest rate is the quoted yearly rate before compounding. APY is the amount you actually earn in a year once interest earns interest. More frequent compounding gives a higher APY. A 5 percent rate compounded monthly has an APY of about 5.116 percent.
Does compounding frequency matter much?
It matters a little. Going from yearly to daily compounding on a 5 percent rate raises the one-year yield from 5.000 to about 5.127 percent. Differences between banks' rates usually matter much more, so compare APY to compare offers like for like.
What happens if I withdraw early?
Most CDs charge an early withdrawal penalty, often several months of interest, which can reduce your principal on short terms. This calculator assumes you hold the CD to maturity. Check your bank's terms for penalties.
Is CD interest taxable?
In many countries, yes, and it is taxed as ordinary income in the year it is earned or credited. Enter your tax rate to see the interest after tax. Rules differ by country and by account type, so check with a tax adviser.
Can I use this for a fixed deposit?
Yes. A fixed deposit, term deposit or time deposit works the same way. If your bank pays interest at maturity or quarterly instead, pick the matching compounding option. Banks in some countries quote simple interest, in which case use the Simple Interest Calculator.