Calculate how much your Certificate of Deposit (CD) will be worth at maturity. Enter your deposit amount, APY, and term to see your total interest earnings.

How CD Interest Is Calculated

CDs use compound interest: A = P(1 + r/n)^nt, where P is your deposit, r is the annual rate (APY), n is the compounding frequency, and t is the term in years. Daily compounding (most common) earns slightly more than monthly or annual compounding.

Choose the right CD inputs

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This CD interest calculator uses the APY, term, deposit amount, and compounding frequency you enter. Rates vary by bank, account type, term, and date, so use the advertised APY for the specific CD you are comparing rather than a generic rate assumption. The result is an estimate of maturity value and interest before taxes or early-withdrawal penalties.

CD Laddering Strategy

Instead of putting all funds in one CD, split across multiple terms (e.g., 1, 2, 3, 4, 5 years). As each CD matures, reinvest at the longest term. This gives you annual access to funds while capturing long-term rates.

FAQ

Are CDs worth it in 2026?
For emergency funds and short-term savings, CDs offer guaranteed FDIC-insured returns above most savings accounts. The tradeoff is early withdrawal penalties (typically 3-12 months of interest).

What happens when my CD matures?
Most banks auto-renew at the current rate after a 7-10 day grace period. Mark your maturity date and compare rates before letting it roll over.

Are CD earnings taxed?
Yes — interest is taxed as ordinary income in the year it's credited, even if you don't withdraw it. CDs in IRAs defer taxes.