What is a CD calculator?
A CD calculator estimates what a certificate of deposit will be worth at maturity. Enter your deposit, term, and annual rate, and it returns the maturity value and the interest earned, so you can compare CD terms and rates before locking your money in.
What affects CD growth
CD growth depends on the deposit amount, the annual percentage yield, and how long the funds remain locked in. Longer terms usually pay higher rates, but liquidity is reduced until maturity, and early withdrawals typically trigger a penalty.
Worked example
For a $10,000 deposit in a 36-month CD at a 4.25% annual rate (compounded monthly):
| Item | Amount |
|---|
| Initial deposit | $10,000 |
| Term | 36 months |
| Interest earned | ~$1,358 |
| Maturity value | ~$11,358 |
How your CD grows to maturity
Green is your deposit; blue is the interest it earns each year. Updates as you change the inputs.
How it works
A CD pays a fixed rate over a set term. Your deposit grows at a predictable rate until maturity, and the bank usually returns the principal plus interest at the end of the term.
FV = P × (1 + r)^n
FV = future value
P = deposit
r = annual rate
n = number of compounding periods
Frequently asked questions
What is a CD?
A certificate of deposit is a savings product with a fixed term and fixed interest rate. Funds are generally locked in until maturity.
Does a longer CD always pay more?
Usually yes, but not always. Banks may offer higher rates for longer terms depending on market conditions.
Can I withdraw early?
Early withdrawals often trigger an early withdrawal penalty, so it is best to match the term to your timeline.
How does compounding work?
Interest is added to the balance and then earns more interest, which can increase growth over time.
When should I consider a CD?
When you want predictable growth and do not need the funds for a set period, a CD may be a strong fit.