CD Calculator
Use our CD calculator to estimate how much you could earn from a certificate of deposit. Enter your initial deposit, CD term, and APY to see your potential earnings on your CD at maturity.
Your total balance
Interest earned by year 5:
Total interest earned = $0.00
Our partners regularly offer APYs that are 2-4x higher than the national average – so you can grow your savings faster.
How to calculate your CD earnings
CDs come with a fixed annual percentage yield (APY) that makes it easier to calculate exactly how much interest you’ll earn when your CD matures. CDs typically offer higher interest rates than other types of savings accounts.
Keep in mind that an early withdrawal penalty can eat into your earnings if you withdraw your funds prematurely before the CD’s term matures. Follow the steps below to use the CD calculator to see how much interest you’ll earn over time:
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1
Enter your initial deposit — the amount of money you plan to put into the CD.
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2
Select your CD term — how long you plan to keep the money in the CD (months or years).
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3
Enter the APY offered by the bank or credit union.
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4
View your total balance and interest earned at maturity.
How much interest will I earn on a CD?
The amount of interest you’ll earn on a CD depends on several key factors:
Initial deposit
A higher deposit means you’ll earn more interest. A $10,000 deposit earns twice the interest of a $5,000 deposit at the same APY and term.
CD term
Longer terms typically come with higher APYs. A 5-year CD usually pays more than a 6-month CD, but your money is locked in longer.
APY
The higher the APY, the more you earn. Online banks and credit unions often offer significantly better rates than traditional brick-and-mortar banks.
Compounding frequency
Most CDs compound daily or monthly. More frequent compounding means slightly higher effective yield over time.
CD terms to know
Term
The amount of time until the CD matures and funds can be withdrawn without penalty.
APY
Annual Percentage Yield — the rate of return on your money, including the effect of compounding interest.
Maturity date
The date your CD term ends and you can withdraw your principal plus interest penalty-free.
Early withdrawal penalty
A fee charged if you withdraw your money before the CD matures — typically several months of interest.
What is a good APY on a CD?
In this current high interest rate environment, you should be able to get a CD APY that’s at least twice that of the national average. For instance, the one-year CD national average is around 2.02% APY — but top-yielding CDs from online banks and credit unions regularly exceed 4–5%.
Our partners regularly offer APYs that are 2–4× higher than the national average — so you can grow your savings faster. The chart in our calculator shows exactly how your earnings compare to the national average over your chosen time period.
Tips to maximize your CD earnings
Shop across multiple banks
Compare rates from online banks, credit unions, and traditional institutions. Online banks typically offer higher rates than traditional brick-and-mortar banks due to lower overhead costs.
Build a CD ladder
Creating a CD ladder allows you to take advantage of higher long-term rates while maintaining some access to your money. Divide your money among CDs with different terms — when shorter ones mature, reinvest at whatever rates are available.
Time the market
When interest rates are expected to fall, open a longer-term CD to lock in today’s higher rate. When rates are expected to rise, stick to shorter terms so you can reinvest at higher rates sooner.
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