CD calculator with APY, compounding and early withdrawal
A certificate of deposit (CD) pays a fixed rate for a fixed term — 3 months to 5 years or more — in return for leaving the money in the bank or credit union until maturity. This CD calculator shows what the CD will be worth at maturity and how much interest it earns, from either the advertised APY or the interest rate, with daily, monthly, quarterly, semi-annual or annual compounding.
It also converts between APY and the rate, shows what an early withdrawal penalty would cost, estimates interest after tax and flags balances above the FDIC insurance limit. Everything runs in your browser. Rates and penalties differ between banks, so enter the figures from the CD’s terms; the results are estimates, not financial or tax advice. For Indian rupee fixed deposits with quarterly compounding and TDS, use the FD calculator.
How to use the CD Calculator
- Enter the deposit and the rate, and say whether the rate is the APY or the interest rate.
- Enter the term in months or years and pick how often interest compounds.
- Optionally enter your tax rate to see the interest you keep.
- In the early-withdrawal box, enter when you might cash out and the penalty in months of interest.
- Compare compounding in the APY table and download the growth table as CSV.
CD Calculator features
APY or rate
Type whichever the bank shows; the other is worked out for the compounding chosen.
Any term
From one month to 20 years, shown month by month up to three years and year by year after that.
Early withdrawal
Interest earned so far, the penalty and the amount you get back — even when the penalty eats into the deposit.
FDIC check
A warning when the balance passes $250,000.
After-tax interest
Interest less your marginal tax rate.
CD formula: APY, compounding and maturity value
APY (annual percentage yield) already includes compounding: APY = (1 + r ÷ n)n − 1, where r is the interest rate and n the compounding periods a year (365 for daily, 12 for monthly). The balance after t years is deposit × (1 + r ÷ n)n·t = deposit × (1 + APY)t. Because the APY is quoted, two CDs with the same APY earn the same, however they compound.
Example: $10,000 in a 12-month CD at 4.00% APY grows to $10,400.00. With daily compounding, that APY is a 3.922% interest rate. A 5-year CD at a 5% rate compounded monthly has an APY of 5.116% and matures at $12,833.59, so $2,833.59 of interest.
Early withdrawal penalties
Most banks charge a set number of months of interest if you take money out before maturity — often around 3 months on short CDs and 6–12 months or more on long ones; the CD’s account disclosure gives the figure. In the example, withdrawing after 6 months has earned $198.04, a 3-month penalty is $98.05, and you get back $10,099.99. If you withdraw very early, the penalty can be larger than the interest earned and reduce your deposit. No-penalty CDs avoid this at a lower rate.
FDIC insurance, taxes and CD ladders
- FDIC insurance covers deposits, CDs included, up to $250,000 per depositor, per FDIC-insured bank, for each account ownership category (fdic.gov, read 24 October 2026). Credit-union CDs are covered by the NCUA on the same basis.
- Taxes: CD interest is ordinary income for federal and usually state tax, in the year it is credited even if you leave it in the CD; banks report $10 or more on Form 1099-INT. CDs in an IRA follow the IRA’s rules.
- CD ladder: splitting money across terms (say 1 to 5 years) keeps some cash maturing every year. Model each rung here, or compare with bonds using the bond yield calculator.
- To see what inflation does to the return, try the inflation calculator.
CD Calculator FAQ
How much will $10,000 earn in a 12-month CD at 4% APY?
$400, for a balance of $10,400 at maturity, if the interest stays in the CD.
What is the difference between APY and the interest rate?
The rate is the yearly rate before compounding; APY includes compounding over a year. At 5% compounded monthly, the APY is 5.116%.
Is a CD compounded daily better than monthly?
At the same rate, yes, slightly. At the same APY, they are identical — compare CDs by APY.
How is a CD early withdrawal penalty calculated?
Usually as a number of months of simple interest on the amount withdrawn, at the CD rate. The CD’s terms give the exact rule.
Are CDs FDIC insured?
Yes, at FDIC-insured banks, up to $250,000 per depositor, per bank, for each ownership category.
Is this financial advice?
No. It is an estimate from the figures you enter; the bank’s disclosure is final.