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CD Calculator

How much will my CD earn by the time it matures?

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$
%
The annual percentage yield the bank quotes.
Taxes and early withdrawal
%
CD interest is taxed as ordinary income, unless it's in an IRA.
months of interest
Check your CD's terms. It's often a few months of interest.
months

Interest earned

$400.00

$10,000 at 4% APY for 1 year.

Balance at maturity
$10,400.00
Matures
November 2, 2027
Interest per month, on average
$33.33

Cash out after 6 months and the 3-month penalty ($98.53) leaves $10,099.50, $99.50 more than you put in.

CD Calculator by Dollars World ·Open the full version

How your CD grows

Month-by-month balance
MonthInterest so farBalance

How it works

A certificate of deposit pays a fixed rate for a fixed term. You agree to leave the money alone until it matures, and the bank pays more than many savings accounts in return. The APY already includes compounding, so the balance after any number of months is:

Balance = deposit × (1 + APY)^(months ÷ 12)

Take money out before the term ends and you pay an early withdrawal penalty, usually a set number of months of interest. If you cash out very early, the penalty can eat into your deposit.

Worked example

You put $10,000 in a 1-year CD at 4.00% APY. At maturity it's worth $10,400.00: $400.00 of interest. In a 22% tax bracket you'd keep $312.00 of that.

Locked in for 5 years at the same APY, the same deposit grows to $12,166.53, or $2,166.53 of interest.

Need the money after 6 months? It has earned $198.04 by then, but a 3-month interest penalty ($98.53) leaves you with $10,099.50.

Things to know

  • Compare APYs, not rates. The APY includes compounding, so it's the fair way to compare CDs and savings accounts side by side.
  • Your money is insured. CDs at FDIC-insured banks are covered up to at least $250,000 per depositor, per bank, for each ownership category. Credit union certificates have similar cover through the NCUA.
  • Watch the maturity date. Many CDs renew automatically into a new term at whatever rate the bank offers then, unless you act during a short grace period.
  • Keep your emergency fund liquid. Money you might need at short notice belongs in a savings account. See how much with the emergency fund calculator.

Questions people ask

Is a CD better than a high-yield savings account?

A CD locks in its rate for the whole term, which helps if rates fall. A savings account lets you take money out any time, but its rate can change. Compare the two with our savings interest calculator.

Is CD interest taxable?

Yes. Interest is taxable income, and the bank reports it on Form 1099-INT. CDs held inside an IRA are taxed under the IRA's rules instead.

What is a CD ladder?

Instead of one big CD, you split the money across several terms, for example 1, 2 and 3 years. Every year one matures, giving you access to part of the money and the chance to reinvest at current rates.

Sources

Reviewed September 26, 2026 by The Dollars World team. How we build and check our calculators · Our data and formulas. This is general information, not financial advice.

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