CD (Certificate of Deposit) Calculator
Calculate CD earnings with different terms and APYs. Compare 3-month to 5-year CDs side by side.
By Konstantin Iakovlev · Updated September 2026 · Source: FDIC — National Rates and Rate Caps (September 21, 2026 release)
Total Interest Earned
$500.00
Final Balance
$10,500.00
Effective APY
5.000%
CD Summary
| Final Balance | $10,500.00 |
| Total Interest Earned | $500.00 |
| Monthly Interest (avg) | $41.67 |
| Effective APY | 5.000% |
Term Comparison
| Term | Interest | Final Balance |
|---|---|---|
| 3 mo | $122.72 | $10,122.72 |
| 6 mo | $246.95 | $10,246.95 |
| 1 yr | $500.00 | $10,500.00 |
| 2 yr | $1,025.00 | $11,025.00 |
| 3 yr | $1,576.25 | $11,576.25 |
| 5 yr | $2,762.82 | $12,762.82 |
Use the CD (Certificate of Deposit) Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
Locking money into a certificate of deposit means knowing exactly what it will be worth when the term ends, and that projection is what this tool produces. The term matters as much as the rate, and a longer term does not always pay more: in the FDIC's national rates published September 21, 2026, the average 12-month CD paid 1.73% and the average 60-month CD 1.38%. Line up several terms and yields here to see the trade-offs at a glance.
Behind the result is the compound interest formula written in terms of the APY: A = P(1 + APY)^t. Here A is the balance at maturity, P is the principal you deposit, APY is the annual percentage yield expressed as a decimal, and t is the term in years. Because the APY already includes the bank's compounding, whether daily or monthly, the calculator does not compound it again: a 5.00% APY turns $10,000 into $10,500.00 over one year.
Because an APY already bakes in compounding, the rate you see is the rate you effectively earn over a year. Two things can erode that, though. Cashing out before maturity usually triggers an early withdrawal penalty that eats into your interest, so read the terms before you commit. And purchasing power matters too: your real return is roughly the APY minus inflation, and consumer prices rose 3.4% in the 12 months to August 2026 (BLS CPI-U), so a CD paying less than that loses buying power even as the balance grows.
Example: Maximizing a $10,000 Investment for 2 Years
- 1 Input an initial deposit of $10,000, a CD term of 2 years, and an APY of 4.60%.
- 2 Using A = P(1 + APY)^t with P = $10,000, APY = 0.046 and t = 2: A = $10,000 × 1.046^2 = $10,000 × 1.094116.
- 3 The balance at maturity is $10,941.16, so the CD earns $941.16 in interest, an average of $39.22 a month.
- 4 The effective yield stays at 4.60% a year, exactly the quoted APY, because the APY already includes the bank's compounding. Cashing out early would trigger an early withdrawal penalty, so pick a term that matches when you need the money.
Source: FDIC — National Rates and Rate Caps (September 21, 2026 release) · Last updated: September 2026
Frequently Asked Questions
Are CDs worth it in 2026?
What is the penalty for withdrawing a CD early?
What is a CD ladder and how does it work?
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