CD Calculator
Calculate the interest earned and final value of a certificate of deposit based on your deposit, APY, term, and compounding frequency.
About This Calculator
A certificate of deposit (CD) is a savings product offered by banks and credit unions that pays a fixed interest rate for a specified term. In exchange for locking your money away for the term length, CDs typically offer higher interest rates than standard savings accounts.
How CD interest works: Your initial deposit earns interest at the stated rate, and depending on the compounding frequency, that earned interest is added to your balance and begins earning interest itself. More frequent compounding (e.g., daily vs. annually) results in slightly more total interest earned over the same term.
APY vs APR: APY (Annual Percentage Yield) reflects the total amount of interest you earn in one year, including the effect of compounding. APR (Annual Percentage Rate) is the simple interest rate without compounding factored in. For the same CD, the APY will always be equal to or higher than the APR. Banks are required to disclose the APY so you can accurately compare offers.
Compounding frequency: CDs can compound interest daily, monthly, quarterly, or annually. Daily compounding yields the most interest, though the difference is often small. This calculator lets you compare how different compounding frequencies affect your returns.