# CD Calculator

> Calculate what a certificate of deposit is worth at maturity from the deposit, rate (APY or APR), compounding and term in months, before and after tax.

Category: Finance · Applies to: Worldwide · Last updated: 2026-10-29
Interactive calculator: https://calculators.geekmidst.com/calculators/cd-calculator

A CD pays a fixed rate for a fixed term. Enter the rate as the bank quotes it, APY or APR with its compounding, to see the interest you will earn by maturity.

Also called: Certificate of deposit calculator, Term deposit calculator.

## Inputs
- Deposit (default 10000)
- Rate (unit %; default 4)
- Rate quoted as (options: APY (annual yield), APR (nominal rate); default apy)
- Compounding (for APR) (options: Yearly, Half-yearly, Quarterly, Monthly, Daily; default 12)
- Term (unit months; default 12)
- Tax rate on interest (unit %; default 0; optional)
- Currency

## Results
- Value at maturity
- Interest earned
- APY
- Interest after tax

## Formula

```
APY = (1 + APR ÷ k)^k − 1;  Value at maturity = Deposit × (1 + APY)^(months ÷ 12)
```

Where:
- APR: nominal annual rate
- k: compounding periods per year
- APY: annual percentage yield (effective annual rate)

## Worked example
1. APY = (1 + 0.05 ÷ 12)^12 − 1 = 5.116%.
2. Value = 10,000 × 1.05116 = 10,511.62 after 12 months.

**Result:** A $10,000 one-year CD at 5% APR compounded monthly (5.116% APY) matures at $10,511.62.

## What the result means

Compare CDs by APY, which already includes compounding. Before locking money in, check the early-withdrawal penalty: it is often several months of interest.

## Assumptions and limits
- Interest is left in the CD and compounds until maturity.
- For terms that are not whole compounding periods, interest is pro-rated using the APY.
- Tax, if entered, is a flat rate on the interest.
- Early-withdrawal penalties are not modelled.
- Some CDs pay interest out instead of compounding it, which earns slightly less.

## Questions

### What is the difference between APY and APR?

APR is the nominal rate before compounding. APY includes the effect of compounding over a year, so it is the better figure for comparing accounts.

### Are CDs insured?

In the US, CDs at FDIC-insured banks and NCUA-insured credit unions are covered up to the insurance limits. Check the institution’s status before you deposit.

## Sources
- [FDIC](https://www.fdic.gov/)

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- [Compound Interest Calculator](https://calculators.geekmidst.com/calculators/compound-interest-calculator)
- [Simple Interest Calculator](https://calculators.geekmidst.com/calculators/simple-interest-calculator)
- [Inflation Calculator](https://calculators.geekmidst.com/calculators/inflation-calculator)

_This calculator gives estimates for planning. It is not financial advice, and lenders’ actual terms, fees and rounding may differ._

Source: GM¹X CalcVerse — https://calculators.geekmidst.com/calculators/cd-calculator