Use our free CD interest calculator to calculate your certificate of deposit (CD) earnings. This online CD interest calculator helps you determine how much interest you'll earn based on your initial deposit, APY, term length, and compounding frequency.
Our CD interest calculator is designed to help you calculate exactly how much interest you'll earn when your CD matures. CDs come with a fixed annual percentage yield (APY) that makes it easier to calculate your returns. CDs typically offer higher interest rates than other types of deposit accounts, like savings accounts.
Follow these steps to use our free CD interest calculator:
Important: Keep in mind that an early withdrawal penalty can eat into your earnings if you withdraw your funds prematurely before the CD's term matures. Our CD interest calculator accounts for compound interest to give you accurate results.
Compound interest is interest calculated on both the initial principal and all of the previously accumulated interest. The more frequently interest is compounded—daily, monthly, quarterly, or annually—the greater the effect of compounding. It can significantly boost investment returns over the long term.
"Compound interest is calculated by multiplying the initial principal amount by one plus the annual interest rate raised to the number of compound periods minus one… Compound interest is generating 'interest on interest.'" — Investopedia
Our CD interest calculator uses the standard compound interest formula to provide accurate calculations:
Where:
Source: Investopedia - Certificate of Deposit Interest Calculation
The more frequently your CD compounds interest, the more you'll earn. Daily compounding typically yields slightly more than monthly, which yields more than quarterly or annual compounding. Use our CD interest calculator above to compare different compounding frequencies.
Use our CD interest calculator to compare rates across multiple banks and credit unions. Online banks typically offer higher CD interest rates than traditional brick-and-mortar banks, sometimes by a full percentage point or more.
Create a CD ladder by dividing your money among CDs with different term lengths. Use our CD interest calculator to compare different scenarios and find the optimal laddering strategy for your needs.
When interest rates are expected to fall, opening a longer-term CD allows you to lock in a higher rate. Use our CD interest calculator to compare short-term vs. long-term scenarios.
In the current interest rate environment, use our CD interest calculator to find CDs with APY rates that are at least twice the national average. Currently, competitive one-year CDs offer rates around 4-5%.
Our CD interest calculator uses the standard compound interest formula: A = P(1 + r/n)^nt. This formula calculates interest on both the initial principal and all previously accumulated interest. According to Investopedia, compound interest is "generating 'interest on interest'" which can significantly boost investment returns over the long term.
Our CD interest calculator uses the standard compound interest formula to provide accurate calculations. The calculator accounts for your initial deposit, APY rate, term length, and compounding frequency to give you precise results for your certificate of deposit earnings.
Our free online CD interest calculator is comprehensive, easy to use, and provides detailed breakdowns of your CD earnings. It supports various compounding frequencies and term lengths, making it perfect for comparing different CD options.
A CD generally pays interest at a fixed rate and requires you to keep your money in for a fixed period. Use our CD interest calculator to see how CD rates compare to savings accounts. Withdrawals before the term ends will result in an early withdrawal penalty.
In the current high interest rate environment, you should look for CD APYs that are at least twice the national average. Use our CD interest calculator to compare different rates - competitive one-year CDs currently offer rates around 4-5% APY.
The amount depends on your initial deposit, APY, term length, and compounding frequency. Use our CD interest calculator to get exact figures. For example, a $10,000 deposit in a 1-year CD with 5% APY and monthly compounding would earn approximately $512 in interest.