CD Calculator
See how much interest a certificate of deposit (CD) will earn and what it will be worth when it matures. You can also check your interest after taxes and what cashing out early would cost.
Results are estimates. They assume a fixed rate, interest left in the CD until maturity and no fees. Banks count days and round in slightly different ways, so your actual interest may differ a little. See our terms of use.
How to use this CD calculator
Enter how much you plan to deposit, the CD's rate and its term in months. CD ads that quote a rate must show the APY, so that's the default rate type. If your paperwork lists an interest rate instead, choose "Interest rate (APR)" and how often it compounds. The results update as you type.
Under More options, add your tax rate (federal plus state) to see the interest you keep. To price an early withdrawal, check the box and enter the month and your CD's penalty in months of interest. The month-by-month table then shows what you'd get back in any month.
How CD interest is calculated
A CD pays a fixed rate for a fixed term, and the interest compounds: each time the bank adds interest, the next interest is figured on a slightly bigger balance. When you know the APY, the math is simple:
Balance = Deposit × (1 + APY)months ÷ 12
When you know the interest rate r and the number of times a year it compounds, n:
Balance = Deposit × (1 + r ÷ n)n × months ÷ 12
Example: $10,000 in a 12-month CD at 4.25% APY grows to $10,425.00, so you earn $425.00 in interest. Keep it for 24 months at the same APY and you'd earn $868.06. A 6-month CD would earn $210.29.
APY vs. interest rate (APR)
A CD's account disclosure must show two rates. The interest rate is the yearly rate before compounding; you may also see it called the nominal rate or APR. The APY (annual percentage yield) is what you actually earn in a year once compounding is included. Because the APY puts every CD on the same footing, it's the number to compare.
Here's what a 4.25% interest rate earns on $10,000 in one year, depending on how often it compounds:
| Compounding | APY | Interest in one year |
|---|---|---|
| Daily | 4.34% | $434.13 |
| Monthly | 4.33% | $433.38 |
| Quarterly | 4.32% | $431.82 |
| Annually | 4.25% | $425.00 |
Going the other way, a 4.25% APY equals an interest rate of 4.16% compounded daily, or 4.17% compounded monthly. The calculator shows this conversion for whatever you enter.
How CDs work and how to choose a term
With a traditional CD, you make one deposit and agree to leave it with the bank or credit union until the maturity date. To see how regular monthly saving grows, use our compound interest calculator.
Before you open one, read the account disclosure. It must list the maturity date, how often interest compounds, how the early withdrawal penalty is calculated, whether the CD renews automatically and, if it does, whether there's a grace period after maturity and how long it lasts.
Choosing a term. Match the term to when you'll need the money: for a goal two years away, look at 2-year CDs. Longer terms often pay more, but not always, and they tie up your money longer. Keep money you might need on short notice, like an emergency fund, in a savings account. Our savings goal calculator shows how much to set aside for a goal.
Early withdrawal penalties
Cashing out before maturity usually costs a penalty. Federal rules set only a minimum: a withdrawal within six days of your deposit costs at least seven days' simple interest. There's no federal maximum, so each bank sets its own penalty. It's usually stated as a number of days or months of interest, and it's often larger on longer CDs.
Example: take the $10,000, 12-month CD at 4.25% APY with a penalty of 3 months' interest. If you withdraw after 6 months, you'd have earned $210.29, the penalty is $104.60, and you'd get back $10,105.69. That's $319.31 less than waiting until maturity. Withdraw after only 2 months, and the $104.60 penalty is more than the $69.61 you've earned. You'd get back $9,965.01, less than you put in.
The calculator estimates the penalty as the interest your deposit would earn over that many months. Banks calculate it in different ways, so check your disclosure. Breaking a CD to move to a higher rate only pays off if the extra interest you'd earn is more than the penalty.
Building a CD ladder
A CD ladder splits your money across several CDs that mature at different times. You get some of the higher rates that longer terms often pay, while part of your money comes due regularly.
Example: split $10,000 into five $2,000 CDs with terms of 1 to 5 years. Using example APYs from 4.00% to 4.40% (not current rates):
| CD | Example APY | Value at maturity |
|---|---|---|
| 1 year | 4.00% | $2,080.00 |
| 2 years | 4.10% | $2,167.36 |
| 3 years | 4.20% | $2,262.73 |
| 4 years | 4.30% | $2,366.83 |
| 5 years | 4.40% | $2,480.46 |
When a CD matures, use the money or reinvest it in a new 5-year CD. After four years, all five are 5-year CDs and one matures every year. In the first year, the ladder earns $420.00 in interest, versus $400.00 with everything in the 1-year CD or $440.00 in the 5-year CD. For shorter goals, a ladder of 3-, 6-, 9- and 12-month CDs works the same way.
No-penalty, bump-up and brokered CDs
- No-penalty CDs let you withdraw before maturity without a penalty, often in exchange for a lower rate. Because of the federal six-day rule, you generally still can't take money out penalty-free in the first six days.
- Bump-up CDs let you request a higher rate if the bank raises its rate for your term, usually a limited number of times.
- Brokered CDs are bought through a brokerage firm. To get out early, you generally sell the CD to another investor instead of paying a bank penalty. If rates have risen since you bought it, you may get less than you paid, and a buyer isn't guaranteed. Some are callable: the issuing bank can end the CD early, typically when rates fall. A brokered CD can be FDIC-insured when the issuing bank is insured and the account records meet FDIC rules. It counts toward your limit at that bank.
Are CDs insured?
Yes, at insured institutions. Bank CDs are covered by the FDIC up to $250,000 per depositor, per insured bank, for each account ownership category, such as single or joint accounts. Credit union CDs, often called share certificates, get the same $250,000 coverage from the NCUA. The limit includes interest earned through the day an insured bank closes, and it counts all your deposits in the same ownership category at that bank, not just this CD. If your balance at maturity would top $250,000, the calculator flags it.
How CD interest is taxed
CD interest is taxable income. You generally owe federal tax, and state tax if your state taxes interest, in the year the interest is credited and you can withdraw it without a substantial penalty. On a CD longer than one year, you usually report part of the interest each year, even if it's paid at maturity. Banks send a Form 1099-INT when they pay you $10 or more in interest (some CDs longer than a year are reported on Form 1099-OID instead), but you must report all interest even without a form.
If you pay an early withdrawal penalty, you still report the full interest and then deduct the penalty on Schedule 1 of Form 1040. It's an adjustment to income, so you don't need to itemize. At a combined 25% tax rate, the $425.00 from our example leaves you $318.75 after tax. CDs held in an IRA follow retirement account rules instead.
CDs vs. high-yield savings vs. Treasury bills
| CD | High-yield savings | Treasury bills | |
|---|---|---|---|
| Rate | Fixed for the term | Can change anytime | Fixed at auction |
| Getting your money | Penalty before maturity | Usually anytime | Sell early at market price |
| Terms | Months to years | None | 4 to 52 weeks |
| Protection | FDIC or NCUA | FDIC or NCUA | U.S. government |
| Tax on interest | Federal and state | Federal and state | Federal only |
A CD makes sense for money you won't need before a set date, when you want to lock in a rate. A high-yield savings account suits an emergency fund. Treasury bills aren't FDIC-insured, but they're backed by the full faith and credit of the U.S. government, and their interest is exempt from state and local income taxes. In a high-tax state, that can make a T-bill pay more after taxes than a CD with a slightly higher rate, so compare after-tax returns.
Frequently asked questions
Should I enter the APY or the interest rate?
Enter whichever your bank gives you and pick the matching rate type. If you have both, use the APY. It already includes compounding, so it's the fairest way to compare CDs.
How often is CD interest compounded?
It depends on the bank: daily, monthly, quarterly or another schedule. Your account disclosure must say which. If you're using the APY, compounding is already built in.
What happens when my CD matures?
Many CDs renew automatically into a new CD, usually with the same term, at the bank's current rate. For CDs longer than a month, the bank must send you a notice before that happens. You may also get a short grace period after maturity to withdraw the money or choose a different term.
Can you lose money in a CD?
Not if you hold it to maturity at an insured bank or credit union and stay within the insurance limits. You can lose part of your deposit if you withdraw early and the penalty is larger than the interest you've earned, or if you sell a brokered CD after rates have risen. Inflation can also shrink what your money buys, even while the balance grows.
Why doesn't my bank's figure match exactly?
Banks figure interest day by day, so leap years, month lengths and your exact open and close dates change the count slightly, and rounding adds a few cents. And if your interest is paid out to another account, it can't compound, so you'll earn a little less than shown here.
Last reviewed: October 2026