Use this free CD calculator to see how much a certificate of deposit will earn by its maturity date. Enter your deposit, the APY, and the term. You can also estimate taxes on the interest, compare the CD with a savings account, and see what an early withdrawal penalty would cost.
Taxes, early withdrawal, and savings comparison
Your bank’s CD disclosure lists the early withdrawal penalty. Many charge a set number of months of interest.
Your CD will be worth
$10,425.00
- Deposit—
- Interest earned—
- Interest after federal tax—
- Savings account instead—
How your CD grows
See the full growth schedule
| Month | Interest that period | Total interest | Balance |
|---|
Assumes the APY stays the same for the full term and interest stays in the CD. Penalty estimate uses simple interest on your deposit. Estimates for educational use, not financial advice.
How to Use This CD Calculator
- Enter your deposit. This is the amount you plan to put in the CD on day one.
- Enter the APY. Use the annual percentage yield the bank or credit union quotes for the CD. APY already includes compounding, so you don’t need to pick a compounding schedule.
- Choose the term. Tap a common term such as 6 months, 1 year, or 5 years, or type any length up to 120 months.
- Add optional details. Open Taxes, early withdrawal, and savings comparison to estimate federal tax on your interest, compare the CD with a savings account APY, or see the result of cashing out early.
Open See how your CD grows for a month-by-month schedule (or year-by-year for terms longer than two years).
What Is a CD?
A certificate of deposit (CD) is a savings account that holds your money for a fixed period, called the term, in exchange for an interest rate that is usually fixed. Terms commonly range from a few months to five years or more. When the term ends, the CD “matures” and you can withdraw your money plus interest.
The trade-off is access. If you take money out before the maturity date, the bank usually charges an early withdrawal penalty.
CD Interest Formula
Because APY already reflects compounding over one year, the calculator uses this formula to find your balance at maturity:
Balance = Deposit × (1 + APY)months / 12
Interest earned is the balance minus your deposit. For example, $10,000 at 4.25% APY for 12 months grows to $10,000 × 1.0425 = $10,425.00, or $425.00 in interest.
CD Calculation Examples
| Deposit | APY | Term | Interest earned | Value at maturity |
|---|---|---|---|---|
| $10,000 | 4.25% | 1 year | $425.00 | $10,425.00 |
| $10,000 | 4.25% | 18 months | $644.23 | $10,644.23 |
| $25,000 | 4.00% | 5 years | $5,416.32 | $30,416.32 |
Taxes on CD interest
CD interest is generally taxable as ordinary income in the year it’s credited to your account, even if you don’t withdraw it until the CD matures. If you’re in the 22% federal tax bracket, the $425.00 earned in the first example would be worth about $331.50 after federal tax. State income tax may also apply.
Early Withdrawal Penalties
Most CDs charge a penalty if you withdraw before maturity. A common structure is a set number of months of interest, and longer terms often carry larger penalties. The exact rule is in your CD’s account disclosure.
Example: You put $10,000 in a 1-year CD at 4.25% APY, and the penalty is 3 months of interest. If you cash out after 6 months, your balance is about $10,210.29 and the penalty is about $104.06, so you’d receive about $10,106.23.
If you withdraw very early, the penalty can be larger than the interest you’ve earned, which means you could get back less than you deposited. Use the early withdrawal option in the calculator to check before you commit.
CD vs. High-Yield Savings Account
| CD | High-yield savings account | |
|---|---|---|
| Rate | Usually fixed for the term | Variable; can change at any time |
| Access to money | Penalty for early withdrawal | Withdraw any time (some accounts limit transfers) |
| Best for | Money you won’t need until a set date | Emergency funds and flexible savings |
| Deposit insurance | FDIC or NCUA, up to the limits | FDIC or NCUA, up to the limits |
A CD makes the most sense when its APY is higher than what you can get in savings and you’re confident you won’t need the money before maturity. A fixed CD rate can also protect you if savings rates fall. Enter a savings APY in the calculator to see the dollar difference for your own numbers.
How a CD Ladder Works
A CD ladder splits your money across several CDs with different maturity dates. For example, $20,000 could go into four $5,000 CDs maturing in 1, 2, 3, and 4 years. Each year, one CD matures, giving you access to part of your money. You can then reinvest it in a new 4-year CD. Laddering balances access to cash with the higher rates that longer terms sometimes offer.
Types of CDs
- Traditional CD: fixed rate, fixed term, and a penalty for early withdrawal.
- No-penalty CD: lets you withdraw early without a penalty, usually for a lower rate.
- Bump-up CD: lets you raise your rate once (or a set number of times) if the bank’s rates go up.
- Jumbo CD: requires a large minimum deposit, often $100,000.
- Brokered CD: bought through a brokerage account. These can often be sold before maturity instead of paying a penalty, but the price you get depends on market rates and could be less than you paid.
Is My CD Insured?
CDs at FDIC-insured banks are covered up to $250,000 per depositor, per insured bank, for each account ownership category. CDs at federally insured credit unions (often called share certificates) have the same coverage limit through the NCUA. If you have more than that at one institution, consider spreading the money across different banks or ownership categories.
Frequently Asked Questions
How much will $10,000 earn in a 1-year CD?
Multiply the deposit by the APY. At 4.25% APY, $10,000 earns $425.00 in one year. At 3.00% APY, it earns $300.00. Enter your own rate in the calculator for an exact figure.
What happens when my CD matures?
Many CDs automatically renew into a new CD of the same term at the current rate unless you act during a short grace period after maturity. For CDs longer than one month that renew automatically, federal rules require the bank to send you a notice before maturity. Read it so you can withdraw or move the money during the grace period if you prefer.
Does compounding frequency matter for a CD?
Not when you compare by APY, because APY already includes compounding. Two CDs with the same APY earn the same amount over a year even if one compounds daily and the other monthly. If a bank quotes only an interest rate, use our APY calculator to convert it.
Can I lose money in a CD?
An insured CD held to maturity at a bank or credit union doesn’t lose value. You can end up with less than you deposited if an early withdrawal penalty is larger than the interest earned. Brokered CDs sold before maturity can also lose value if rates have risen.
Do I pay tax on CD interest every year?
Generally, yes. Interest is usually taxable in the year it’s credited to your account, even for multi-year CDs. Your bank typically sends Form 1099-INT if you earn $10 or more in interest during the year.
More free calculators
Sources
- Consumer Financial Protection Bureau: What is a certificate of deposit (CD)?
- Consumer Financial Protection Bureau: Regulation DD § 1030.5, Notices for automatically renewing time accounts
- Investor.gov (SEC): Certificates of Deposit (CDs)
- FDIC: Understanding Deposit Insurance
- IRS: Topic No. 403, Interest Received
This calculator provides estimates for educational purposes only and is not financial or tax advice. Actual results depend on your CD’s terms, penalties, and taxes. Last updated: October 12, 2026.