Calculate the maturity value and interest earned on a certificate of deposit (CD), compounded monthly.
Monthly compounding (example)
A CD calculator shows how much a certificate of deposit (CD) will be worth at maturity, based on your deposit amount, the APY (Annual Percentage Yield), and the term length in months. Since CDs typically lock in a fixed rate for a set period, this calculator gives you a clear, predictable picture of exactly what you'll earn — assuming you hold the CD until maturity.
This calculator compounds interest monthly over the CD's term. Each month, interest is calculated on the current balance (including all previously earned interest) and added to it.
Formula: Balance after each month = Balance × (1 + r), where r is the APY ÷ 12. After the full term, the resulting balance is the maturity value.
Example: For a $10,000 deposit at a 4.5% APY (example rate — enter your offered rate) with a 12-month term, the maturity value would be roughly $10,460, meaning about $460 in interest earned over the year. (Note: all figures in this example are for illustration purposes only and do not represent current or actual bank rates.)
A certificate of deposit (CD) is a savings product offered by banks and credit unions that pays a fixed interest rate for a set term in exchange for you agreeing not to withdraw the funds until maturity. CD rates vary by term length, deposit amount, and institution — often online banks and credit unions offer higher rates than traditional brick-and-mortar banks (example rate used in this calculator — actual CD rates vary by institution and change frequently with market conditions). Withdrawing funds before the CD matures typically triggers an early withdrawal penalty, often calculated as a forfeiture of some months of interest, which is not included in this calculator.
No — the default rate is an example only. CD rates vary by term length, deposit amount, and institution, and change frequently with market conditions. Use the rate offered by your bank or credit union for an accurate projection.
Most CDs charge an early withdrawal penalty, often equal to a certain number of months of interest. This calculator assumes you hold the CD until maturity and does not account for early withdrawal penalties.
This calculator compounds interest monthly over the CD's term, which is a common compounding frequency for CDs, though some CDs compound daily or quarterly — check your CD's specific terms.
A CD ladder involves splitting your savings across multiple CDs with staggered maturity dates (for example, 3, 6, 9, and 12 months), so portions of your money become available periodically while still earning CD rates.
No. Interest earned on a CD is generally taxable as income in the year it's earned (even if you don't withdraw it), which would reduce your effective return compared to the gross maturity value shown.
A CD locks in a fixed rate for a set term but restricts access to funds without penalty, while a high-yield savings account offers more flexibility but its rate can change at any time. The better choice depends on whether you need access to the funds and your view on future rate changes.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only. All rates and examples shown are sample values and do not reflect current or actual bank rates. Financial rules and regulations change frequently. Always consult a qualified financial advisor or your bank before making any financial decisions.