CD (Certificate of Deposit) Calculator
Calculate CD earnings with different terms and APYs. Compare 3-month to 5-year CDs side by side.
By Konstantin Iakovlev · Updated April 2026 · Source: SEC
Total Interest Earned
$512.67
Final Balance
$10,512.67
Effective APY
5.127%
CD Summary
| Final Balance | $10,512.67 |
| Total Interest Earned | $512.67 |
| Monthly Interest (avg) | $42.72 |
| Effective APY | 5.127% |
Term Comparison
| Term | Interest | Final Balance |
|---|---|---|
| 3 mo | $125.78 | $10,125.78 |
| 6 mo | $253.13 | $10,253.13 |
| 1 yr | $512.67 | $10,512.67 |
| 2 yr | $1,051.63 | $11,051.63 |
| 3 yr | $1,618.22 | $11,618.22 |
| 5 yr | $2,840.03 | $12,840.03 |
Use the CD (Certificate of Deposit) Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
Locking money into a certificate of deposit means knowing exactly what it will be worth when the term ends, and that projection is what this tool produces. The calculation matters more than usual right now: with the Federal Reserve signaling possible rate cuts in late 2025 and into 2026, the spread between, say, a 4.50% APY on a 1-year CD and a 4.25% APY on a 5-year CD in mid-2026 changes which term actually serves you best. Line up several terms and yields here to see the trade-offs at a glance.
Behind the result is the standard compound interest formula, A = P(1 + r/n)^(nt). Here A is the future value, P is the principal you deposit, r is the annual rate expressed as a decimal, n is how many times interest compounds each year, and t is the term in years. Banks generally compound CD interest daily, so n is set to 365, which mirrors how a quoted APY actually accrues.
Because an APY already bakes in compounding, the rate you see is the rate you effectively earn over a year. Two things can erode that, though. Cashing out before maturity usually triggers an early withdrawal penalty that eats into your interest, so read the terms before you commit. And purchasing power matters too: a 4.50% APY delivers a thinner real return if 2026 inflation lands near the projected 3.0%.
Example: Maximizing a $10,000 Investment for 2 Years
- 1 Input an initial deposit of $10,000, a CD term of 2 years, and an APY of 4.60% (a competitive rate for a 2-year CD in early 2026).
- 2 Using the formula A = P(1 + r/n)^(nt), with P=$10,000, r=0.0460, n=365, and t=2: A = $10,000 * (1 + 0.0460/365)^(365*2).
- 3 After calculating the exponent and multiplication, the future value 'A' is approximately $10,962.77.
- 4 Your $10,000 investment, earning a 4.60% APY over 2 years, will grow to $10,962.77, yielding $962.77 in interest. This demonstrates the power of compounding on your savings.
Source: SEC · Last updated: April 2026
Frequently Asked Questions
Are CDs worth it in 2026?
What is the penalty for withdrawing a CD early?
What is a CD ladder and how does it work?
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