CD Calculator

Use MoneyGeek's free CD calculator to estimate your certificate of deposit. Enter your deposit amount, APY and the expected time period to see how your money grows over time.

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CD Calculator

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By Nathan Paulus
Edited by Venus Zoleta

Updated: December 2, 2025

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How to Use MoneyGeek’s CD Calculator

To use our CD calculator, enter the amount you plan to deposit into a certificate of deposit (CD). Next, provide the annual percentage yield (APY): the interest rate your CD earns, including compounding effects. Finally, choose how long you'll keep your money in the CD.

The calculator displays your total interest earned and final balance when your CD matures. Your money grows over time based on your term length and APY. The chart visualizes this growth.

Change your deposit amount or APY to compare different CDs. Use these projections to choose the right CD for your savings timeline, whether you're saving for a house down payment in two years or building wealth for retirement.

  1. 1
    Enter deposit amount

    Your deposit amount determines your total interest earned. A $10,000 deposit earns substantially more than $1,000 over the same term because interest compounds on a larger base.

    Deposit only money you won't need before maturity. Early withdrawals trigger penalties (three to six months of interest) that cut into your earnings. Smaller deposits work best for shorter terms when you need faster access to your funds.

  2. 2
    Input APY

    Annual percentage yield (APY) represents your CD's interest rate, including compounding. Higher APYs mean more interest — a 0.5% difference adds up over multi-year terms. A 5-year CD earning 4.5% APY generates hundreds more dollars than one at 4% APY on a $10,000 deposit.

    CD rates between 4% and 5% are currently competitive for longer terms. Compare APYs from at least three banks or credit unions before opening your CD.

  3. 3
    Select calculation periods

    Choose between monthly or yearly views. Monthly breakdowns show exactly how your balance grows each month, useful for shorter CDs or detailed planning. Yearly views display multi-year CDs more clearly and emphasize how compounding builds over time.

  4. 4
    Set CD term length

    Your CD term locks in your money for a set period, ranging from three months to five years. Longer terms earn higher interest rates because banks reward you for committing your money. Shorter terms let you access funds sooner but earn less.

    Match your term to your timeline. Need money for a house down payment in 18 months? Choose an 18-month CD. Building retirement savings over 10 years? A 5-year CD earns more, and you can open a new one when it matures.

How to Read the Results

The calculator shows two key numbers: total interest earned and your final balance at maturity. Your final balance includes your original deposit plus all interest. This is the total amount you'll receive when your CD matures.

You'll also see a graph showing how your money grows. The curve steepens over time as compounding builds. This effect is most visible in longer-term CDs. A detailed monthly or yearly view helps you decide whether to reinvest the funds or use them for planned financial goals.

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SAMPLE COMPUTATION

A $5,000 deposit at 4.5% APY for three years earns $706 in interest, bringing your final balance to $5,706.

Compounding increases your balance over time. Your deposit earns $225 in interest during the first year, bringing your total to $5,225. By the second year, cumulative interest reaches $460, boosting your balance to $5,460.

Extending the term to five years shows compounding's greater impact. The interest adds up to $1,231, resulting in a $6,231 balance. Longer terms amplify growth and maximize returns.

Advantages of CDs

CDs offer a secure way to grow your savings. Federal insurance protects your deposits, a fixed APY guarantees returns, and you don't need to manage the account. They work well for conservative savers who want a hands-off investment.

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    Security and stability

    CDs are among the safest places to store your money. The FDIC insures bank deposits, and the NCUA insures credit union deposits up to $250,000 per account holder per institution. For balances exceeding these limits, you can spread deposits across multiple institutions for additional coverage, protecting your savings even if the financial institution experiences difficulties.

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    Predictable returns

    Unlike volatile investments like stocks, CDs offer predictable growth through a fixed APY. From the moment you open a CD, you know exactly how much interest your deposit will earn and what your total balance will be at term's end. This stability works well for conservative investors or those saving for specific goals, such as a home purchase or emergency fund.

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    No management required

    CDs are a set-it-and-forget-it investment. Once you deposit your money and the term begins, you don't need to actively monitor or manage your account. This hands-off approach appeals to people who prefer a passive investment option. Whether you're new to saving or want a low-maintenance way to grow your funds, CDs provide a straightforward path.

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WHAT HAPPENS IF I WITHDRAW MONEY FROM A CD EARLY?

Early withdrawals trigger penalties: three to six months of interest. If you withdraw before earning enough interest to cover the penalty, you'll lose part of your original deposit. Check your CD's penalty terms before withdrawing; penalties vary by bank and CD term length.

Alternatives to CDs

CDs work well for fixed timelines, but other options give you more flexibility or higher returns depending on your needs. Savings accounts, money market accounts and high-yield savings accounts let you withdraw money anytime. Bonds and Treasury securities offer comparable safety with different time horizons.

Savings Accounts

Savings accounts let you deposit and withdraw money anytime without penalties. They work well for emergency funds or savings you might need within a year. Interest rates are lower than CDs at 0.5% to 1% APY, but you keep full access to your money.

Money Market Accounts

Money market accounts earn 1% to 2% more than regular savings accounts, and many include check-writing or debit card access. Most require minimum balances between $1,000 and $10,000. You'll earn better rates than savings accounts while keeping your money accessible.

High-Yield Savings Accounts (HYSAs)

High-yield savings accounts pay interest rates similar to CDs (4% to 5% APY at many online banks) with no withdrawal penalties. You can access your money anytime while earning nearly as much as a CD. Rates adjust with market conditions, unlike CD rates, which stay fixed.

Other Low-Risk Investments

Treasury bonds and notes offer government-backed safety with terms from four weeks to 30 years. Corporate bonds from stable companies pay higher rates but carry slightly more risk. Both options lock in your money like CDs but trade on secondary markets, giving you an exit option if needed.

Strategies to Maximize CD Returns

Maximize your CD returns by timing your investments strategically. CD laddering lets you access money at regular intervals while earning higher rates on longer-term CDs. When rates rise, shorter-term CDs let you reinvest at better rates sooner.

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    CD laddering

    Split your deposit into multiple CDs with staggered maturity dates, a strategy called CD laddering. For example, instead of committing all your funds to a single five-year term, allocate equal portions to one-year, three-year and five-year CDs. This strategy gives you regular access to portions of your funds while still benefiting from the higher returns of longer terms. As each CD matures, reinvest the balance into a new long-term CD to maintain the ladder and enhance returns over time.

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    Reinvesting upon maturity

    When a CD matures, rolling over the balance into a new CD with a higher APY helps you take advantage of better rates. Many financial institutions allow automatic reinvestment, but review available options before committing. Compare current CD rates at maturity to ensure you're getting the best return possible.

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    Diversify CD types

    Different CD types offer trade-offs between flexibility and returns. Bump-up CDs let you increase your rate if market rates rise, while no-penalty CDs let you withdraw funds early without fees. Callable CDs often offer higher rates upfront but come with the possibility of the bank terminating the CD early. Choose based on what matters most: rate flexibility (bump-up CDs), early withdrawal access (no-penalty CDs) or maximum returns (callable CDs).

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ACCOUNT FOR INFLATION AND TAXES IN CD RETURNS

CDs guarantee your return, but inflation reduces what that money can buy. If your CD earns 4% and inflation runs at 3%, your real return is only 1%. This matters more for longer-term CDs where inflation compounds over years.

CD interest counts as taxable income. If you're in the 22% tax bracket, a 4% CD return becomes 3.12% after taxes. Consider holding CDs in tax-advantaged accounts like IRAs or Roth IRAs to keep more of your earnings.

CD Calculator FAQ

CDs often spark questions about potential earnings, interest calculations and term options.

How much will a CD earn with compounding interest?

How do you calculate CD interest?

How much does a $10,000 CD make in a year?

Can I earn 7% APY on a CD?

What happens if I invest $500 in a CD for five years?

Why should you put $15,000 into a one-year CD now?

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About Nathan Paulus

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Nathan Paulus is the Head of Content at MoneyGeek, where he conducts original data analysis and oversees editorial strategy for insurance and personal finance coverage. He has published hundreds of data-driven studies analyzing insurance markets, consumer costs and coverage trends over the past decade. His research combines statistical analysis with accessible financial guidance for millions of readers annually.

Paulus earned his B.A. in English from the University of St. Thomas, Houston.

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