CD Calculator

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

CD Calculator

A CD calculator is a tool used to determine the interest earned on a certificate of deposit. The calculator estimates the accrued interest and total amount at maturity by inputting the initial deposit, interest rate, and term. It helps individuals plan and make informed decisions before investing in CDs.

Related Reading: Compare the best CD rates from 475 banks and credit unions, all in one place.

Our Favorite Rates To Grow Your Money

TermSavings AccountInstitutionAPY
N/AMoney Market AccountUncle Credit Union5.23%
N/ASavings AccountNexBank5.26%
12 MonthsCDBread Savings5.25%
5 YearsFixed AnnuityWichita National6.30%

Disclaimer: This is a comparison review. The Annuity Expert is not associated with a bank or credit union. We aim to help you find the highest interest rates for your savings. We may receive a small referral fee if you purchase something using a link in this guide.

What is a CD Calculator?

A CD, or Certificate of Deposit, calculator is a tool used to determine the interest earned and the final value of a CD investment. Certificates of Deposit are a type of savings account with a fixed interest rate and fixed date of withdrawal, known as the maturity date.

Cd Interest Calculator

How Does a CD Calculator Work?

  1. Principal Amount: The initial deposit in the CD.
  2. Interest Rate: The annual percentage yield (APY) of the CD.
  3. Compounding Frequency: How often the interest is calculated and added to the balance.
  4. Term: The duration of the CD.

The calculator uses these inputs to compute the final amount you will receive when the CD matures.

Example Calculation

  • Principal: $5,000
  • APY: 2%
  • Term: 2 years
  • Compounding: Monthly

The final amount would be calculated considering the monthly compounding of interest.

CD Investment Growth

YearPrincipalInterest EarnedTotal Balance

Note: This table is a simplified representation for illustrative purposes.

Cd Rate Calculator


A CD can be a reliable and low-risk investment. Understanding terms like CD rate, APY, and the differences in compound interest is crucial to maximizing your investment returns. By analyzing these factors, you can better understand the potential yield of your certificate of deposit.

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Cd Calculator

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Frequently Asked Questions

How much interest will I earn on a CD?

The amount of interest earned on a CD depends on the interest rate and the length of time the money is invested. To calculate how much interest you will earn on a CD, multiply the principal amount by the interest rate and the number of years. The formula is: Interest = Principal x interest rate x time.

How do I calculate CD interest?

To calculate CD interest, determine the annual interest rate and the length of the CD term. Divide the interest rate by the number of compounding periods per year, then multiply it by the initial deposit. Multiply the result by the number of years the CD will be held to calculate the total interest earned.

How do I calculate APY on CD?

To calculate the APY (Annual Percentage Yield) on a CD (Certificate of Deposit), divide the interest rate by the number of compounding periods per year. Multiply the result by the number of years the CD matures. Finally, add 1 to the result, raise it to the power of the number of compounding periods, and subtract 1.

What is a cd calculator compounded monthly?

A CD calculator compounded monthly is a financial tool used to estimate the earnings from a certificate of deposit (CD) that compounds monthly. By inputting the initial deposit, interest rate, and term length, individuals can determine the final value of their investment after compounding.

If I put $500 in a cd for 5 years, how much would I earn?

If someone were to put $500 in a CD for 5 years, they can expect to earn interest on their investment. The exact amount of interest earned would depend on the CD’s interest rate. CDs typically offer higher interest rates compared to savings accounts, making them a popular choice for long-term savings goals.

How much does a $10000 cd make in a year?

The amount of money a $10,000 certificate of deposit (CD) makes in a year depends on the interest rate. For example, if the interest rate is 2%, the CD would earn $200 in a year. However, rates can vary, so it’s essential to check with specific banks or financial institutions for accurate calculations on how much a $10,000 CD can earn in a year.

What is a cd maturity calculator?

A CD maturity calculator is a tool used to estimate the value of a certificate of deposit (CD) at the end of its term. It takes into account the initial investment, interest rate, and length of the CD. By using this calculator, individuals can determine how much they will have earned upon maturity.

How is interest calculated on a cd?

CD interest is based on initial deposit, interest rate, and term length. Banks compound interest daily, monthly, or annually, increasing the total amount earned without further action.

Related Reading

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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