CD Calculator — Certificate of Deposit Interest & APY
Calculate how much your CD will earn: final value, total interest, APY, and a month-by-month growth table. Adjust principal, rate, term, and compounding frequency to compare offers.
CD Calculator
What is a Certificate of Deposit (CD)?
A certificate of deposit is a fixed-term, fixed-rate savings product offered by banks and credit unions. You deposit a sum (the principal), agree to leave it untouched for a specified term (3 months to 5+ years), and earn a guaranteed interest rate that’s typically higher than a regular savings account.
- Fixed rate — locked in at deposit, immune to Fed rate changes during the term.
- FDIC/NCUA insured up to $250,000 per depositor.
- Early withdrawal penalty if you take money out before maturity.
- Predictable — you know exactly what you’ll earn at maturity.
CD Term Comparison
Typical APY ranges across major US banks and credit unions, late 2025 / early 2026. Online banks usually pay above the high end; brick-and-mortar branch banks pay near or below the low end.
| Term | Typical APY Range | Best For |
|---|---|---|
| 3 months | 3.50–4.50% | Short-term cash parking, emergency reserve |
| 6 months | 4.00–5.00% | Near-term goals (down payment, big purchase) |
| 12 months | 4.00–5.25% | Most popular term — balance of yield + flexibility |
| 24 months | 3.75–4.75% | Medium-term, locking a rate before cuts |
| 36–48 months | 3.50–4.50% | Laddering, predictable income |
| 60 months | 3.50–4.50% | Long-term lock when rates are high |
Rates fluctuate weekly. Always compare actual APY (not interest rate) and check the institution’s FDIC/NCUA insurance before depositing.
CD vs High-Yield Savings Account (HYSA)
- Use a CD when: you have money you’re sure you won’t need until a known date, you want to lock a rate before expected cuts, or you’re building a CD ladder for predictable income.
- Use a HYSA when: you need full liquidity (no penalty), the rate gap vs CDs is small (< 0.50%), or rates are likely to keep rising.
- Hybrid: ladder strategy. Split your money across multiple CDs maturing at staggered intervals (e.g., 3, 6, 12, 24 months). Rolls maturing CDs into new ones — smooths rate risk and keeps some cash accessible regularly.
Early Withdrawal Penalties
If you break the CD before maturity, the bank charges a penalty — usually a fixed number of months of interest:
| Term | Typical Penalty |
|---|---|
| Under 12 months | 3 months of interest |
| 12–59 months | 6 months of interest |
| 60+ months | 6–12 months of interest |
If you withdraw very early (e.g., a 5-year CD in month 2), the penalty can exceed earned interest and dip into your principal. The calculator’s “Estimate early-withdrawal penalty” checkbox shows the impact for your scenario.
No-penalty CDs are available from some online banks at slightly lower rates — consider them if there’s any chance you’ll need the money.
Frequently Asked Questions
How much will a $10,000 CD earn in 1 year?
At a 4.50% APY with monthly compounding, a $10,000 CD earns about $459 in 1 year, ending at $10,459. At 5.00% APY, it earns about $511 ($10,511 final). Use the calculator to plug in your exact rate, term, and compounding frequency.
What is APY vs interest rate?
Interest rate (APR) is the nominal annual rate. APY (Annual Percentage Yield) accounts for compounding frequency and is your actual effective return. Example: 4.50% interest compounded monthly = APY of 4.594%. APY is always ≥ APR when compounding more than once a year. Always compare CDs by APY, not by rate.
Are CDs FDIC insured?
Yes — CDs at FDIC-insured banks are protected up to $250,000 per depositor, per bank, per ownership category. Credit-union CDs get equivalent NCUA insurance. Always confirm the institution is insured (look for the FDIC/NCUA logo) before depositing.
What happens if I withdraw a CD early?
Most banks charge an early-withdrawal penalty: typically 3 months of interest for terms under 12 months, 6 months for 12–59 months, and 6–12 months for 5+ year CDs. The penalty can sometimes exceed earned interest, leaving you with less than your principal. No-penalty CDs exist at slightly lower rates if you may need access.
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Calculations use the standard compound interest formula A = P(1 + r/n)^(n×t). APY ranges are 2025–2026 US national averages from major banks and credit unions; actual rates vary by institution, region, and minimum deposit. Verify your CD's terms with the issuing bank before opening. CDs at FDIC-insured banks are protected up to $250,000 per depositor, per ownership category.
