How to use the CD Calculator
The CD calculator shows the value of a certificate of deposit at maturity and the effective yield.
What you need to enter
- Deposit ($)
- Interest rate (%)
- Term (months)
- Compounding
The formula
Value = deposit × (1 + rate ÷ n)^(n × years), where n is the compounding frequency. APY = (1 + rate ÷ n)^n − 1.
Worked example
Using the default values in the calculator:
- Deposit ($): 10000
- Interest rate (%): 4.5
- Term (months): 12
- Compounding: Monthly
| Value at maturity | $10,459.40 |
| Interest earned | $459.40 |
| APY | 4.594% |
Tips for better results
- Compare APY, not just the rate.
- Check early-withdrawal penalties.
Common mistakes to avoid
- Comparing rates with different compounding.
- Locking in money you may need.
Please note: Calculators and guides give general estimates, not financial, tax or investment advice. Real offers depend on your lender, location and personal situation. See our Disclaimer.