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Certificate of Deposit Calculator

CD Calculator

Calculate your Certificate of Deposit returns with compound interest, tax considerations, and detailed year-by-year breakdown.

100% FreeCompound Interest FormulaYear-by-Year Breakdown
CD Calculator
Enter your Certificate of Deposit details to calculate returns

Amount you plan to deposit

Annual Percentage Yield (APY)

How often interest is compounded

Number of years

Additional months (0-11)

Tax rate on interest earnings (0% for tax-free accounts)

Common CD Examples
Click on any example to automatically fill the calculator
CD Example

Conservative 10-year CD at 5% APY

Principal: $10,000
Rate: 5% APY
Term: 10 years
CD Example

High-yield 10-year CD at 6.5% APY

Principal: $25,000
Rate: 6.5% APY
Term: 10 years
CD Example

Long-term 10-year CD at 4.25% APY

Principal: $5,000
Rate: 4.25% APY
Term: 10 years
CD Example

Premium 10-year CD at 7% APY

Principal: $50,000
Rate: 7% APY
Term: 10 years
What is a Certificate of Deposit (CD)?

A Certificate of Deposit (CD) is a time deposit offered by banks and credit unions. It features fixed terms and typically offers higher interest rates than regular savings accounts.

Key Features:

  • Fixed Term: Money is locked in for a specific period
  • Fixed Interest Rate: Rate remains constant throughout the term
  • Compound Interest: Earnings accumulate over time
  • FDIC Insured: Protected up to $250,000 per depositor

Formula: A=P(1+rn)ntA = P(1 + \frac{r}{n})^{nt}
Where A = final amount, P = principal, r = annual rate, n = compound frequency, t = time in years

Understanding Compound Interest

Compound interest is the interest calculated on both the initial principal and the accumulated interest from previous periods. It's often called "interest on interest."

Why It Matters:

  • Your money grows faster over time
  • More frequent compounding = higher returns
  • Time is your biggest advantage
  • Small rate differences have big long-term impacts

Compound vs Simple Interest:

Simple: Interest only on principal
Compound: Interest on principal + accumulated interest

Tax Consideration: Interest from CDs is taxable income. Higher tax brackets reduce your effective return.

Why Use Our CD Calculator?

Accurate Calculations

Precise compound interest formula with all frequencies

Year-by-Year Breakdown

See exactly how your money grows over time

Tax Considerations

Calculate after-tax returns for better planning

Free & Easy

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