SlickCalc

CD Calculator

Calculate CD interest, final value, APY, and total earnings by term and compounding frequency.

Deposit Details
Compounding Frequency
Common CD Rates

Typical CD rates vary by term. Longer terms generally offer higher rates.

6-Month

4.50 - 5.00%

1-Year

4.75 - 5.25%

2-Year

4.25 - 4.75%

5-Year

4.00 - 4.50%

Results

Final Value

$10511.62

Total Interest Earned

$511.62

APY

5.116%

Deposit ($10000)Interest ($512)

A = P(1 + r/n)^(nt)

P = $10000, r = 5%, n = 12, t = 1.00 yr

= $10000 × (1 + 0.004167)^12

= $10511.62

How CD Interest Works

A Certificate of Deposit (CD) is a bank deposit that pays a fixed rate for a fixed term. Your earnings depend on four main inputs: the initial deposit, the interest rate, the term length, and how often interest compounds. This calculator uses the standard formula A = P(1 + r/n)^(nt), where P is your deposit, r is the annual rate, n is the compounding frequency, and t is the term in years.

Use this CD calculator when you want to answer practical questions such as: How much interest will a 1-year CD earn? What is the final value of a 6-month or 5-year CD? How does APY change with daily vs monthly compounding? APY is especially useful because it reflects the real annual return after compounding, making it easier to compare one CD with another.

For most typical CD balances, daily compounding earns only slightly more than monthly or quarterly compounding, but the gap becomes more noticeable with larger deposits, higher rates, or longer terms. If you want to compare a CD with more flexible cash options, read our guide on CD vs savings account. For longer-term growth with market risk, compare with the investment calculator or compound interest calculator.

Frequently Asked Questions

What is the difference between APR and APY?
APR (Annual Percentage Rate) is the stated interest rate without accounting for compounding. APY (Annual Percentage Yield) includes the effect of compounding and represents your actual annual return. APY is always equal to or higher than APR.
Does compounding frequency really matter?
Yes, but the difference is small for typical CD amounts and rates. For example, on a $10,000 CD at 5% for 1 year, daily compounding earns about $2 more than annual compounding. The difference grows with larger deposits and longer terms.
How much interest does a 1-year CD earn?
It depends on your deposit amount and rate. For example, a $10,000 CD at 5% for 1 year earns about $500 in interest before taxes, with the exact amount depending slightly on compounding frequency. This calculator shows the final value, total interest earned, and APY for your exact inputs.
What happens if I withdraw early from a CD?
Most banks charge an early withdrawal penalty, typically equal to several months of interest. This penalty can eat into your principal if you withdraw very early. Always check the early withdrawal terms before opening a CD.
Are CD earnings taxable?
Yes, CD interest is considered taxable income by the IRS. Your bank will report interest earned on Form 1099-INT. You owe taxes on the interest in the year it is credited, even if you do not withdraw it.

Related Guides

CD vs Savings Account: Which Earns You More Money?
Compare CDs and savings accounts side by side. Learn when each option wins, how CD rates work, and calculate your potential earnings with our free CD calculator.

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