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Money calculators · Updated September 3, 2026

CD Calculator

Enter the deposit, rate and term to see exactly how much a certificate of deposit pays at maturity, and the APY you should compare against other banks.

Certificate of deposit calculator

Interest earned at maturity$434.13on $10,000.00 over 12 months
Ending balance
$10,434.13
APY
4.34%

How CD interest is calculated

ending balance = deposit × (1 + rate ÷ n)^(n × term in years)
interest       = ending balance − deposit
APY            = (1 + rate ÷ n)^n − 1        n = compounding periods per year

A CD quoted at 4.25% compounded daily has an APY of about 4.34%; the same rate compounded annually pays exactly 4.25%. Because APY already includes compounding, it is the only number you need to compare offers. The calculator assumes you hold the CD to maturity and reinvest nothing.

Frequently asked questions

How is CD interest calculated?

Interest compounds on the schedule the bank sets (daily is most common): ending balance = deposit × (1 + rate ÷ n)^(n × years), where n is the number of compounding periods per year. Interest = ending balance − deposit.

What is the difference between APY and interest rate?

The interest rate is the nominal annual rate; APY (annual percentage yield) is what you actually earn in a year after compounding, (1 + rate ÷ n)^n − 1. Banks must disclose APY under the Truth in Savings Act (Regulation DD), so compare CDs by APY.

Is CD interest taxable?

Yes. Interest is taxed as ordinary income in the year it is credited, even if you leave it in the CD. Your bank sends Form 1099-INT for $10 or more. CDs inside an IRA grow tax-deferred.

What happens if I withdraw early?

Most CDs charge an early-withdrawal penalty of several months of interest (commonly 3 months for terms under a year, 6 to 12 months for longer terms), which can exceed the interest earned if you leave early. The calculator assumes you hold to maturity.

Are CDs insured?

CDs at FDIC-insured banks and NCUA-insured credit unions are insured up to $250,000 per depositor, per institution, per ownership category.

Sources and updates

Figures are for tax year 2026 and were checked against the sources below on . Rates change every January; we review every data file at the start of each year and whenever a state announces a mid-year change.

This calculator gives estimates for information only and is not tax, legal or financial advice. Your employer's payroll system, local taxes, benefits and year-to-date wages can change the exact amounts on your pay stub. See how we calculate.