📈 Personal Finance Tool
CD Calculator: Compound Interest & Growth
Calculate your Certificate of Deposit earnings, compound growth, and total payout at maturity.
Calculate your Certificate of Deposit earnings, compound growth, and total payout at maturity.
A Certificate of Deposit (CD) is a low-risk savings instrument offered by banks and credit unions that pays a guaranteed fixed interest rate in exchange for locking your funds away for a predetermined duration.
| Term | Interest Earned | Total Balance |
|---|---|---|
| 6 Months | ~$222.50 | $10,222.50 |
| 1 Year (12 Mo) | ~$450.00 | $10,450.00 |
| 3 Years (36 Mo) | ~$1,411.66 | $11,411.66 |
| 5 Years (60 Mo) | ~$2,461.82 | $12,461.82 |
Compound interest on fixed-term deposits uses the compound growth formula:
A = P x [1 + (r / n)]^(n x t)
Where P = Initial Deposit, r = Annual Interest Rate (decimal), n = Compounding periods per year, and t = Time in years.
| Feature | CD | High-Yield Savings |
|---|---|---|
| Rate Type | Fixed | Variable |
| Access to Funds | Locked until maturity | Anytime |
| Early Withdrawal | Penalty applies | No penalty |
| FDIC Insured | Yes (up to $250k) | Yes (up to $250k) |
| Best For | Set-and-forget savings | Emergency fund |
Compound interest generates yield on your principal plus previously accrued interest, delivering higher exponential returns over longer terms.
Early withdrawal penalties usually forfeit 3 to 12 months of interest, depending on the terms of your financial institution.
Yes. Member FDIC banks and NCUA credit unions insure CD balances up to $250,000 per depositor.
At maturity you can withdraw the full balance, renew the CD at the current rate, or roll it into a different term. Most banks give a short grace period (7–10 days) to decide.
Yes. CD interest is taxed as ordinary income in the year it is credited, even if you don't withdraw the funds. You will receive a 1099-INT from your bank.
A = P x (1 + r/n)^(n x t)
A = Final balance
P = Principal deposit
r = Annual rate (decimal)
n = Compounds per year
t = Time in years
| Daily (365x) | Best |
| Monthly (12x) | Better |
| Quarterly (4x) | Good |
| Annually (1x) | Basic |
More frequent compounding = slightly higher yield on the same stated rate.