This CD calculator shows how much a certificate of deposit will be worth when it matures, how much interest you earn, and what an early withdrawal could cost. Enter the APY your bank quotes, or an interest rate and compounding frequency.
How CD interest is calculated
When a bank quotes an APY, compounding is already included, so the value at maturity is:
Value = deposit × (1 + APY)term in years
If you only know the interest rate, the calculator first converts it to APY using the compounding frequency: APY = (1 + rate ÷ n)n − 1.
Worked example
A $10,000 deposit in a 12-month CD at 4.25% APY is worth $10,425 at maturity, so you earn $425 in interest. If you broke the CD early with a three-month interest penalty, it would cost about $104.
Common CD terms and penalties
| CD term | Typical early withdrawal penalty |
|---|---|
| Under 1 year | About 1–3 months of interest |
| 1–2 years | About 3–6 months of interest |
| 3–5 years | About 6–12 months of interest |
Penalties vary widely between banks, so check the account terms before you open a CD.
CD strategies
- CD ladder: split your money across CDs that mature at different times, for example 1, 2, 3, 4 and 5 years, so some cash becomes available every year.
- No-penalty CD: a lower rate in exchange for being able to withdraw early without a fee.
- Watch the renewal date: many CDs renew automatically at whatever rate the bank is paying then.
Frequently asked questions
Is a CD better than a high-yield savings account?
A CD locks in a rate for a fixed term, which protects you if rates fall, but you lose access to the money without a penalty. A savings account keeps your money available but its rate can change at any time.
Is CD interest taxable?
In the US, CD interest is generally taxed as ordinary income in the year it is credited, even if the CD has not matured. Enter your tax rate to see the after-tax interest.
Can I lose money in a CD?
Not at an insured bank if you hold it to maturity. You can earn less than expected, or even lose some principal, if an early withdrawal penalty is larger than the interest earned so far.
What happens when a CD matures?
You usually get a grace period, often 7 to 10 days, to withdraw the money or change the term. If you do nothing, many banks renew it automatically.
Are CDs insured?
Yes. CDs at FDIC-insured banks and NCUA-insured credit unions are covered up to $250,000 per depositor, per institution, per ownership category.
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Last reviewed: October 2026. This calculator is for education only and is not financial, tax or legal advice.