Calculate Certificate of Deposit earnings with compound interest. Compare different terms, rates, and compounding frequencies to maximize your savings.
Final Balance
$10,513
Initial deposit, APR, and term length
Final Balance at Maturity
$10,513
After 12 months
Total Interest Earned
$513
5.13% total return
Principal
$10,000
APR
5%
APY
5.127%
Interest/Month
$43
See your balance grow over the term
| Compounding | APY | Interest | Final Balance |
|---|---|---|---|
| daily | 5.127% | $513 | $10,513 |
| monthly | 5.116% | $512 | $10,512 |
| quarterly | 5.095% | $509 | $10,509 |
| semi annually | 5.062% | $506 | $10,506 |
| annually | 5.000% | $500 | $10,500 |
Divide your deposit into multiple CDs with staggered terms for better liquidity
| CD | Amount | Term | Est. Interest |
|---|---|---|---|
| CD #1 | $2,000 | 1 Year | $103 |
| CD #2 | $2,000 | 2 Years | $210 |
| CD #3 | $2,000 | 3 Years | $324 |
| CD #4 | $2,000 | 4 Years | $443 |
| CD #5 | $2,000 | 5 Years | $568 |
| Total | $10,000 | Laddered | $1,647 |
Rates vary by bank and market conditions. Check current rates before opening a CD.
3 Mo
4.50%
6 Mo
4.75%
1 Year
5.00%
2 Years
4.50%
5 Years
4.25%
* Rates shown are for illustration. Actual rates depend on market conditions and individual banks.
Final Balance
$10,513
See how different APR affects your CD earnings
2 insights based on your inputs
5% is among the best CD rates available. Lock in this rate before the market changes.
Split your deposit across 1-5 year CDs. As each matures, reinvest in 5-year CDs for better rates with annual liquidity.
Explore other tools that might help
To calculate CD returns, use the compound interest formula: A = P(1 + r/n)^(nt), where P is principal, r is annual rate, n is compounding frequency, and t is years. Our free calculator at practicalwebtools.com instantly shows your maturity value and total interest earned.
A Certificate of Deposit is a savings product where you deposit money for a fixed term at a fixed interest rate. CDs typically offer higher rates than regular savings accounts because you commit to leaving your money untouched until maturity. Early withdrawal usually incurs a penalty.
APR (Annual Percentage Rate) is the simple interest rate without compounding. APY (Annual Percentage Yield) includes the effect of compound interest and shows your actual return. A 5% APR compounded monthly has an APY of about 5.12%. Always compare APY when shopping for CDs.
More frequent compounding means higher returns. Daily compounding earns slightly more than monthly, which earns more than annually. For example, $10,000 at 5% for 1 year: daily compounding = $512.67 interest, annual = $500. The difference grows with larger amounts and longer terms.
Early withdrawal typically incurs a penalty, often 3-6 months of interest depending on the term. Some CDs have no-penalty options with slightly lower rates. Always check the early withdrawal penalty before opening a CD, especially for longer terms.
Yes, CD interest is taxable as ordinary income, even if you don't withdraw it. You'll receive a 1099-INT form for interest over $10. Consider tax-advantaged accounts (IRA CDs) or municipal bonds if you're in a high tax bracket.
A CD ladder involves buying multiple CDs with staggered maturity dates. For example, buy 5 CDs maturing in 1, 2, 3, 4, and 5 years. This provides regular access to funds while capturing higher long-term rates. As each CD matures, reinvest in a new 5-year CD.
Final Balance
$10,513