CD Interest Calculator

Use this free CD (Certificate of Deposit) calculator to estimate how much interest your investment will earn over time. Whether you’re comparing rates, terms, or compounding frequency, this tool makes it easy to visualize your returns. Enter your deposit amount, APY (Annual Percentage Yield), and CD term to calculate your total interest and final balance. Perfect for comparing offers from banks like Chase, Capital One, or Marcus by Goldman Sachs.

CD Calculator

Use the CD Calculator Below to Estimate Your Total Returns

years
months
Total balance
$10,400.00
Total interest earned
$400.00

Principal and interest

Initial deposit:
96%
Interest paid:
4%

How the CD Interest Calculator Works

This CD calculator uses the compound interest formula to estimate your total earnings. It calculates your final balance based on your initial deposit, interest rate (APY), and period. The result includes a detailed breakdown of your total interest earned and its contribution to your final balance

What Is a CD (Certificate of Deposit)?

A Certificate of Deposit is a low-risk investment product offered by banks and credit unions. You deposit a fixed amount of money for a fixed time (term) and earn interest at a fixed rate. The longer the term or the higher the APY, the more interest you earn.

Types of Compounding for CDs

Different banks compound interest at various intervals — daily, monthly, or annually. This calculator assumes monthly compounding, a standard practice for many financial institutions. For more accurate estimates, check with your bank’s compounding policy.

CD Ladder Strategy: Maximize Your Returns

Instead of locking in all your funds in one CD, consider a CD ladder strategy—spreading your investments across multiple CDs with different maturities. It offers more flexibility and can help you capitalize on rising interest rates.

CD vs. High-Yield Savings: Which One Is Better?

While high-yield savings accounts offer liquidity, CDs typically offer higher APYs in exchange for locking in your funds. Use this calculator to compare how much more you could earn with a CD for a fixed term.

Frequently asked questions

CD interest is calculated using the compound interest formula, based on your deposit amount, APY, term length, and compounding frequency. This calculator assumes monthly compounding for accuracy.

APY stands for Annual Percentage Yield. It represents the total amount of interest you’ll earn in one year, factoring in the effects of compounding. A higher APY means more interest over time.

No, this tool does not include early withdrawal penalties. Most banks charge a fee or forfeit interest if you withdraw your money before the CD matures. Always check your bank’s policy.

Daily compounding earns slightly more interest than monthly. However, many banks compound monthly by default. This calculator assumes monthly compounding unless otherwise stated.

Yes! Run this calculator multiple times using different deposit amounts and term lengths to simulate a CD ladder. It’s a smart way to strike a balance between returns and liquidity.