CD Calculator

Understanding what you will get as a return after investing in a CD is a powerful piece of information. Use our CD calculator to discover how much you can expect to make from a CD that you are interested in.

Required Information

Initial Investment ($):

Term Length:

APY %:

End Value:

What it is

What is a CD?

Create Date: June 25, 2024

Last Modified Date: November 25, 2024

A CD is a type of investment account that someone can open in the US. CD stands for certificate of deposit, it is an account that a bank or credit union can offer for you. Each establishment will have different offerings, not every CD is created equal and offering the same benefits.

How do you Calculate CD Values?

To calculate the amount that a CD investment will be worth after its life, you will use the following variables:

Initial investment

Term length

APY %

We can then use these values in the following formula to find the value at the end of its term:

An image showing the formula for calculating the value of a CD after its term completes.

Where:

EV = Ending value

IA = Initial investment amount

TM = Total months

Understanding Your Results

Your result will represent the amount of money that your CD is worth at the end of its term. NOTE: This tool calculate the ending value based on a monthly compounding frequency. If your CD is not compounding monthly than the results here will not be accurate, they will be greater than the true return you will see.

How to Use the CD Calculator Tool

Our CD calculator tool is important to forecasting returns and should be easy to use. Luckily, we made this tool as easy and simple as possible so you can spend less time forecasting and more time enjoying its returns. The steps include:

Enter the initial amount invested.

Enter the length of the term.

Enter the APY of the CD you are investing in.

Hit calculate and get your answer instantly!

Example Calculation

Let's say we want to forecast how much our most recent CD investment will make. We can use this tool to do this, we just need to get the value for each variable needed. We invested a total of $25,000 into a CD with a term length of 12 months and an APY percent of 3.31.

After we hit calculate we learn that our estimated ending value is about $25,840.17. A grand total gain of $840.17 in just a year!

Certificate of Deposit (CD) - Frequently Asked Questions

A Certificate of Deposit (CD) is a type of savings account that holds a fixed amount of money for a fixed period of time, such as six months, one year, or five years, and in return, you earn interest. The CD has a higher interest rate than regular savings accounts because the money you deposit is locked in until the maturity date.

When you purchase a CD, you agree to deposit a fixed sum of money for a fixed period and at a fixed interest rate. The bank uses your deposit during this period, and in return, it pays you interest. You receive the original amount plus earned interest back at the end of the term (at maturity).

There are many resources online to help you understand CDs better, this website is great and this YouTube video is great also.

Yes, there are several types of CDs, including traditional CDs, bump-up CDs, no-penalty CDs, and jumbo CDs. Each offers different terms and benefits, such as the ability to bump up to a higher rate, withdraw funds without penalty, or invest larger amounts for higher returns.

Withdrawing money from a CD before the maturity date usually incurs a penalty. This penalty can vary significantly between banks and depends on the CD’s term and other terms of your agreement. Always check the specific penalty details before opening a CD.

Typically, you cannot add money to an existing CD during its term. You must wait until the CD matures to add funds, or you can choose to open another CD with additional funds.

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