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CD Calculator (Certificate of Deposit)
Certificate of deposit earnings at maturity from the APY or rate, term and compounding, after tax.
Calculated in your browser – nothing you enter is sent or stored.
A certificate of deposit (CD) pays a fixed rate for a fixed term in return for leaving your money untouched. This CD calculator shows your balance at maturity, the interest earned, the APY and the after-tax return, and compares the same rate across terms from 3 months to 5 years.
How to Use the CD Calculator
- Enter your deposit and the rate. Banks usually advertise the APY; if you have the interest rate instead, choose that and pick the compounding frequency.
- Enter the term in months – 12 for a 1-year CD, 60 for a 5-year CD.
- Enter your tax rate to see what you keep. CD interest is taxed as ordinary income.
CD Interest Formula
With the APY: balance = deposit × (1 + APY)years. With an interest rate compounded n times a year: balance = deposit × (1 + rate/n)n × years.
Example: $10,000 in a 1-year CD at 4.25% APY grows to $10,425 – $425 of interest. In the 22% tax bracket you keep $331.50. A 4.25% interest rate compounded daily is a slightly higher 4.341% APY, which is why comparing by APY matters.
| $10,000 at 4.25% APY | Balance at maturity | Interest |
|---|---|---|
| 6 months | $10,210.29 | $210.29 |
| 1 year | $10,425.00 | $425.00 |
| 2 years | $10,868.06 | $868.06 |
| 3 years | $11,329.96 | $1,329.96 |
| 5 years | $12,313.47 | $2,313.47 |
Early Withdrawal Penalties
Taking money out before the CD matures usually costs a penalty, often 3 months of interest for terms under a year and 6–12 months or more for longer terms. On a short CD the penalty can eat into your deposit. If you might need the money, consider a no-penalty CD or a high-yield savings account (compare with the savings calculator).
CD Strategies
- CD ladder: split your money across 1-, 2-, 3-, 4- and 5-year CDs. Each year one matures, giving you access to cash while most of your money earns longer-term rates.
- Lock in rates with a longer CD if you expect rates to fall.
- Brokered CDs, bought through a brokerage account, can be sold before maturity instead of paying a penalty – but the price may be lower than you paid.
- Watch automatic renewal: at maturity many CDs roll over into a new CD at the current rate unless you act during the grace period, usually 7–10 days.
Are CDs Safe?
CDs at FDIC-insured banks and NCUA-insured credit unions are protected up to $250,000 per depositor, per institution, per ownership category, even if the bank fails.
Sources
- FDIC – Deposit insurance
- FDIC – National rates and rate caps
- SEC Investor.gov – Certificates of deposit (CDs)
Last reviewed: October 2026 by the ShrinkBee team. Results are estimates for planning and education, not financial, tax, legal or medical advice.
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