CD Calculator

What Is a Certificate of Deposit?

A Certificate of Deposit (CD) is a fixed-term investment offered by banks, where you deposit money for a specified period in exchange for a higher interest rate than a regular savings account.

Why You Should Use a CD Calculator?

Using a CD Calculator helps you estimate potential earnings, compare different CD options, and choose the best investment based on your financial goals.

How To Use This CD Calculator?

To calculate your CD earnings, input your initial deposit, CD term length, APY, and compounding frequency into the CD Calculator, then click the "Calculate" button. You’ll see the amount of interest you’d earn over the CD’s term and the final value of your investment.

How To Read Your CD Calculator Results?

CD Calculator results show your total earnings, interest earned, and final balance at the end of the term. Our CD Calculator also provide chart and table to present the results in more detail, helping you understand your investment's performance more easily.

CD Terms To Know

1. Initial Deposit: The amount of money you invest in the CD.
2. CD Term Length: The duration for which your money is locked in the CD.
3. Annual Percentage Yield (APY): The yearly interest rate that includes compounding effects.
4. CD Interest: The amount earned on your investment over the term.
5. Compounding Frequency: How often interest is added to the principal (e.g., daily, monthly, quarterly, semiannually, annually). If you don't know, use the default value "monthly".

*Understand all the terms and use the CD Calculator more accurately.

APY vs. APR

Our CD Calculator using APY to calculate. It is important to make the distinction between annual percentage yield (APY) and annual percentage rate (APR). Banks tend to use APR for debt-related accounts such as mortgages, credit cards, and car loans, whereas APY is often related to interest-accruing accounts such as CDs and money market investments. APY denotes the amount of interest earned with compound interest accounted for in an entire year, while APR is the annualized representation of the monthly interest rate. APY is typically the more accurate representation of effective net gains or losses, and CDs are often advertised in APY rates.

How Much Interest Will I Earn on a CD?

The interest earned on a CD depends on the initial deposit, APY, term length, and compounding frequency, which can be easily calculated using a CD Calculator.