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Certificate of Deposit (CD) Calculator

See exactly how much your CD earns — with APY, total interest, and a full monthly breakdown.

Updated June 2026 · Editorial standards

Your CD

$
%
$

Use for CD laddering — adding to the CD each month.

Final balance
$10,511.62
Total interest
$511.62
APY
5.116%
Term
1 year

Your CD earns $511.62 over 1 year — an effective APY of 5.116%.Starting with $10,000, your 1 year CD grows to $10,511.62. APY accounts for compounding and reflects the true annual yield regardless of how often interest is calculated.

Balance growth over CD term

Principal vs interest at maturity

Rate details

Nominal rate (APR)5.000%
Effective yield (APY)5.1162%
Interest earned$511.62
Return on principal5.12%
CompoundingMonthly
By the KalkWise Editorial Team Reviewed for accuracy Updated June 2026

What is the cd calculator?

In short

A certificate of deposit (CD) earns a fixed interest rate for a set term. The final value is calculated as: FV = P × (1 + r/n)^(n×t), where P is principal, r is the annual rate, n is compounding periods per year, and t is years. The Annual Percentage Yield (APY) = (1 + r/n)^n − 1 — the effective yearly return accounting for compounding.

This CD calculator shows exactly how much interest your certificate of deposit earns, computes the true APY for any compounding frequency, and generates a month-by-month balance breakdown.

How to use this calculator

  1. 1Enter your deposit amount (principal).
  2. 2Enter the annual interest rate offered.
  3. 3Select the CD term in months.
  4. 4Choose how often interest compounds (monthly is most common for CDs).
  5. 5Review total interest earned, final balance, and effective APY.

The formula

FV=P×(1+rn)n·t
APY=(1+rn)n−1
FV = P × (1 + r/n)^(n×t). APY = (1 + r/n)^n − 1. More frequent compounding slightly increases your effective yield — daily compounding at 5% APR gives an APY of ~5.13%.
FV
— Future value (final balance)
P
— Principal (initial deposit)
r
— Annual rate (decimal)
n
— Compounding periods per year
t
— Term in years

Worked example

The scenario

$25,000 deposit at 5.25% APR, 12-month term, compounding monthly.

gives

The result

Final balance: $26,342. Interest earned: $1,342. APY: 5.37%.

Common use cases

  • Comparing CD offers from different banks at different rates and terms
  • Calculating the difference between monthly and daily compounding
  • Planning a CD ladder to maintain liquidity while earning higher rates
  • Finding the best use for emergency fund money above your liquidity cushion

Limitations & assumptions

  • Assumes the rate remains fixed for the full term — callable CDs may be redeemed early by the bank.
  • Early withdrawal penalties (typically 60–150 days of interest) are not modeled.
  • FDIC insurance ($250,000 per depositor per institution) is not reflected in calculations.

Frequently asked questions

A CD is a savings account with a fixed interest rate and fixed term, offered by banks and credit unions. In exchange for locking up your money for the term, you receive a guaranteed, typically higher interest rate than a standard savings account.

Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.