CD Calculator
Calculate certificate of deposit earnings with APY. Compare CDs, view growth over time, and estimate early withdrawal penalties.
Results
Balance at Maturity
$10,500.00
$500
Interest Earned
Initial Deposit
Interest Earned
Initial Deposit
$10,000
Interest Earned
$500.00
Effective APY
5.00%
Maturity Date
Dec 2025
APY vs APR Breakdown
Your APY (includes compounding)
5.00%
Equivalent APR (simple rate)
4.88%
Extra earnings from compounding
$12.00
Early Withdrawal Penalty Calculator
Most CDs charge a penalty if you withdraw before maturity. Click a penalty period to see the impact:
3 Months Interest
-$125.00
You'd receive: $10,375.00
6 Months Interest
-$250.00
You'd receive: $10,250.00
12 Months Interest
-$500.00
You'd receive: $10,000.00
If you withdraw early with a 3-month penalty:
You'd receive $10,375.00
This is after losing 3 months of interest ($125.00) from your total earnings.
Balance Growth Over Time
Compare Up to 3 CDs
CD Option 1
CD Option 2
CD Option 3
CD 1 Final Balance
$10,450.00
+$450.00 interest
CD 2 Final Balance
$10,750.00
+$750.00 interest
CD 3 Final Balance
$11,050.00
+$1,050.00 interest
Understanding CDs
CD Interest Formula
A = P(1 + APY)^t
Where A is final amount, P is principal, APY is annual percentage yield, and t is time in years.
APY to APR Conversion
APR = n[(1 + APY)^(1/n) - 1]
Convert APY to APR where n is compounding periods per year. APR is the simple interest equivalent.
FDIC Insurance
$250,000 per depositor
CDs are FDIC insured up to $250,000 per depositor, per bank. Your principal is protected.
Frequently Asked Questions
A Certificate of Deposit (CD) is a savings product offered by banks and credit unions that pays a fixed interest rate for a specified term. CDs typically offer higher interest rates than regular savings accounts in exchange for locking your money for the term length (3 months to 5+ years). Your deposit is FDIC insured up to $250,000, making CDs a very safe investment option.
APY (Annual Percentage Yield) includes the effect of compound interest and shows your actual yearly return. APR (Annual Percentage Rate) is the simple interest rate without compounding. Banks advertise APY for CDs because it shows the true return. For example, a 5% APR compounded daily has an APY of 5.127%. Always compare APY when shopping for CDs to see the real return.
Early withdrawal penalties vary by bank and CD term. Typical penalties are 3 months of interest for terms under 1 year, and 6 months of interest for terms of 1 year or longer. Some banks charge up to 12 months of interest for long-term CDs (5+ years). The penalty can eat into your principal if you withdraw early before earning enough interest to cover it. Some banks offer "no-penalty CDs" with lower rates but no withdrawal fees.