Certificate of Deposit Calculator

About this calculator

A certificate of deposit (CD) pays a fixed interest rate in exchange for locking up a deposit for a set term, and its maturity value depends on the compounding frequency: Maturity Value = Principal x (1 + r/n)^(n x t), where r is the annual rate, n is the number of compounding periods per year, and t is the term in years. The difference between maturity value and principal is the interest earned.

Savers use CDs when they want a guaranteed, FDIC-insured return that’s higher than a standard savings account, in exchange for giving up access to the money before the term ends (early withdrawal typically triggers a penalty of several months’ interest). Because CD interest is taxable as ordinary income in the year it’s earned or credited — even if you don’t withdraw it — the after-tax return is meaningfully lower than the stated rate for anyone in a higher tax bracket, which is why comparing CDs against high-yield savings and treasury bills usually needs to be done on an after-tax basis.

This calculator takes your deposit amount, rate, term and compounding frequency and returns the maturity value, interest earned, and after-tax return.