CD Interest Calculator
Calculate how much interest you'll earn on a Certificate of Deposit (CD). Enter your deposit amount, interest rate, and term to see total interest and final balance.
Part of our Finance Calculators collection.
CD Interest Calculator
Free online calculator
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%
Annual Percentage Yield — check your bank's current CD rates
How to Use This Calculator
- 1
Enter the amount you plan to deposit.
- 2
Enter the APY offered by your bank (check bankrate.com for current rates).
- 3
Select the CD term.
- 4
See your total interest earned and final balance at maturity.
How CD Interest is Calculated
Final Balance = Principal × (1 + APY/n)^(n×t) Where: APY = annual percentage yield (as decimal) n = compounding periods per year t = term in years Interest Earned = Final Balance − Principal
Example Calculation
Example: $10,000 at 5% APY for 12 months
Inputs
principal: 10000apy: 5termMonths: 12compoundFrequency: 365
Result
$512.67 interest | $10,512.67 at maturity
$10,000 × (1 + 0.05/365)^365 = $10,512.67. Daily compounding earns slightly more than simple interest.
Frequently Asked Questions
What is the difference between APY and APR?
APR (Annual Percentage Rate) is the base interest rate. APY (Annual Percentage Yield) includes the effect of compounding. For CDs, banks quote APY, which is the more useful number — it tells you your actual annual earnings.
What happens if I withdraw early?
Almost all CDs charge an early withdrawal penalty — typically 3–6 months of interest for short-term CDs and 6–12 months for longer terms. Factor this in before locking up your money.
Are CDs FDIC insured?
Yes. CDs at FDIC-insured banks are protected up to $250,000 per depositor, per institution. Credit union CDs are covered by NCUA up to the same amount.