Free tool · Finance
CD Calculator
Enter a deposit amount, annual rate, term in years, and compounding frequency to see the value at maturity, interest earned, and effective annual rate (APY).
Value at maturity of $10,000 at 5% for 5 years?
Compounding monthly, $2,833.59 of the maturity value is interest.
- A = 10,000 × (1 + 0.05 ÷ 12)12 × 5.
- = $12,833.59 at maturity — $2,833.59 of it is interest (APY 5.116%).
How to use this CD calculator
- Enter the deposit amount, the annual rate and the term in years.
- Pick how often the interest compounds: annually, quarterly, monthly or daily.
- Read the large figure: the value at maturity, with the interest earned and the effective annual rate (APY) alongside.
What a CD calculator is
A CD calculator projects the maturity value of a single deposit held for a fixed term at a stated annual rate and compounding frequency. It returns the balance at the end of the term, the interest earned, and the effective annual rate that results from the chosen compounding schedule.
In the default case a $10,000 deposit at 5% for 5 years, compounded monthly, reaches a value at maturity of $12,833.59. Interest earned is $2,833.59 and the effective annual rate (APY) is 5.116%.
Reading the growth chart
The chart under the result draws your deposit growing across the term. The blue line is the compound growth this calculator works out; it curves upward because each period's interest starts earning interest of its own. The orange line shows the same deposit, at the same rate, earning simple interest instead — on the default figures it ends at $12,500.00, so the gap between the lines at maturity is $333.59: exactly what compounding adds. The dashed line marks your deposit. Move your mouse over the chart, or touch it, to read both values at any point.
The formulas
Value at maturity
A = P × (1 + r ÷ n)n × t
P is the deposit amount, r the annual rate as a decimal, n the compounding periods per year and t the term in years. For the default case, $10,000 at 5% for 5 years compounded monthly produces $12,833.59 at maturity.
Interest earned
Interest earned = A − P
The value at maturity minus the original deposit. On the default figures, $12,833.59 − $10,000 = $2,833.59.
Effective annual rate (APY)
APY = (1 + r ÷ n)n − 1
r is the annual rate and n the compounding periods per year. The yearly rate you actually earn once compounding is counted: a stated 5% compounded monthly produces an APY of 5.116%.
Examples
| Example | Deposit | Rate | Term | Compounding | Value at maturity | Interest earned |
|---|---|---|---|---|---|---|
| Default | $10,000 | 5% | 5 years | Monthly | $12,833.59 | $2,833.59 |
| Example 2 | $5,000 | 4.5% | 3 years | Daily | $5,722.64 | $722.64 |
| Example 3 | $25,000 | 5.25% | 1 year | Annually | $26,312.50 | $1,312.50 |
Three mistakes people make with CDs
Confusing the nominal rate with the APY
The stated annual rate is the nominal rate. The APY is higher once compounding is taken into account — 5% compounded monthly is a 5.116% APY. Using one in place of the other misstates the true yearly yield.
Selecting the wrong compounding frequency
Banks may compound annually, quarterly, monthly, or daily, and each produces a different maturity value at the same stated rate. Match the frequency to the actual CD terms.
Treating the CD as if it accepted additional deposits
A standard CD is a single deposit. This calculator does not add further contributions during the term — for a starting amount plus monthly deposits, use the Savings Calculator instead.
Frequently asked questions
What is the value at maturity?
It is the deposit plus all the interest it earns over the term. In the default case, $10,000 becomes $12,833.59.
Why is the APY different from the stated rate?
The APY includes the effect of compounding within the year. In the default case, a 5% stated rate compounded monthly has an APY of 5.116%.
Does the compounding frequency change the result?
Yes. In Example 2, $5,000 at 4.5% compounded daily for 3 years reaches $5,722.64, and its APY is 4.602%. Choose the pill that matches your CD.
Why is the interest in Example 3 simple to check?
It uses annual compounding over a single year, so the interest is the deposit times the rate. $25,000 at 5.25% earns $1,312.50, for a value of $26,312.50.
Does the calculator include taxes or early-withdrawal penalties?
No. It assumes the rate is fixed and the deposit stays in place for the whole term.
What does the simple-interest line on the chart show?
It shows growth if interest were calculated on the original deposit only. The gap between it and the compound curve is the effect of compounding — $333.59 by maturity in the default case. The calculator runs in your browser and is a calculation aid, not financial advice.
Privacy and important information
This calculator runs entirely in your browser: your numbers are never sent to a server, stored, or shared. It is a calculation aid, not financial advice — it does not model early-withdrawal penalties, fees or taxes, or the terms of a specific CD.
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