CD Calculator
Calculate how much a certificate of deposit will earn by maturity from the deposit, APY and term.
How CD interest works
A certificate of deposit (CD) pays a fixed rate for a fixed term, from a few months to five years or more. In exchange, you agree not to withdraw the money early; doing so usually costs a penalty of several months of interest. Banks quote CDs by APY (annual percentage yield), which already includes compounding, so the maturity value is straightforward:
Maturity value = Deposit × (1 + APY)^(months ÷ 12)
$10,000 in a 12-month CD at 4.25% APY grows to $10,425. At a 22% tax rate, you keep about $331.50 of the $425 interest.
CDs vs high-yield savings
High-yield savings accounts let you withdraw anytime, but their rates can fall whenever the Federal Reserve cuts rates. A CD locks in today's rate. If rates are expected to fall, locking in a longer CD can pay off; if they may rise, shorter terms keep you flexible.
CD ladders
A ladder splits your money across several CDs with staggered maturities, for example 1, 2, 3, 4 and 5 years. Each year one CD matures and can be reinvested at the longest term. You get access to part of your money every year while earning closer to long-term rates.
Safety
CDs at FDIC-insured banks and NCUA-insured credit unions are protected up to $250,000 per depositor, per institution, per ownership category. Brokered CDs bought through an investment account are also FDIC-insured but can lose value if sold before maturity.
Frequently asked questions
Is CD interest taxable?
Yes. In the US, CD interest is taxed as ordinary income in the year it is credited, even if the CD has not matured, unless it is held in an IRA.
What happens when a CD matures?
You usually get a grace period of 7–10 days to withdraw or move the money. Otherwise it often renews automatically at the current rate.
Can I lose money in a CD?
Not on an insured bank CD held to maturity. Early withdrawal penalties can eat into interest and occasionally principal.
Last reviewed Oct 20, 2026. Results are estimates; check important decisions with a qualified professional.