CD Interest Calculator
Work out the interest and maturity value of a certificate of deposit from its APY and term.
…
How to do it
- 1Fill in the boxes
Type your numbers or pick the options you need.
- 2See the result
The answer updates right away as you change a value.
- 3Use it
Copy the result or note it down. Nothing is sent anywhere.
About this tool
Enter the deposit, the APY, the term in months and your tax rate. The calculator shows the interest earned, the interest after tax and the value at maturity. APY already includes compounding, so it is applied directly.
How a CD earns
A certificate of deposit holds your money for a fixed term at a fixed APY. The interest over a term of m months is the deposit times (1 + APY) to the power m/12, minus one. Interest is taxable income in the year it is credited, even if you do not withdraw it.
Example
$10,000 at 4.25 percent APY for 12 months earns $425, or about $331 after a 22 percent tax rate.
Tips
Bank CDs are insured by the FDIC up to $250,000 per depositor per bank. Early withdrawal usually costs several months of interest.
Frequently asked questions
What is APY?
Annual percentage yield, the real yearly return including compounding.
Are CDs safe?
Deposits are insured up to $250,000 per depositor per insured bank.
What if I withdraw early?
You usually pay a penalty of a few months of interest.
Is the interest taxed?
Yes, as ordinary income, even if you reinvest it.