CD Calculator - Certificate of deposit
Use our Free Best CD calculator to find out how much total interest you will make on a certificate of Deposit over time after it matures from 1 month years
CD Calculator
Investment Summary
Total Interest Earned
Final Balance
What is a Certificate of Deposit?
A Certificate of Deposit (CD) is a financial product available through banks and credit unions that enables you to save a set amount of money for a predetermined duration, referred to as the “term.” During this period, the money remains in the account without withdrawals, and in return, the institution offers a higher interest rate than standard savings accounts.
CD Calculator Terms
Initial Deposit
Think of your initial deposit as the foundation money you commit to grow. Banks set their own minimum requirements, often starting from $500 upwards. Many investors begin with $1,000 to $10,000, though some prefer larger sums. The beauty lies in flexibility – you pick an amount matching your comfort level and financial goals.
Annual Percentage Yield (APY)
APY works like a growth map for your money. It shows your real returns over a year, factoring in how often the bank adds interest to your balance. Banks might offer rates like 3.5% or 4.2% APY. The key difference from regular interest? APY includes the benefit of earned interest generating its own returns through compounding.
Term Length
Your term length reflects your savings timeline. Our calculator works in both months and years because everyone’s needs differ. Maybe you want a short 3-month CD while building an emergency fund, or perhaps you are thinking long-term with a 5-year investment. Each timeline brings its own benefits – shorter terms mean quicker access, while longer ones typically boost your earnings potential.
So, the choice is yours to decide what works best for you and your family.
Total Interest Earned
This number reveals your actual profit – the extra money you’ve made above your starting amount. It changes based on three things: how much you put in, your APY, and your chosen timeline. Think of it as your reward for letting the bank hold onto your money.
Final Balance
The final balance tells your complete story – it combines your starting money with everything you’ve earned. This assumes you stick to your original plan without early withdrawals. It’s particularly helpful when planning for specific goals, like saving for a down payment or future education costs.