Financial Calculators

Certificate of Deposit Calculator

This calculator will demonstrate the amount of interest or Annual Percentage Yield you can expect on a Certificate of Deposit. Enter the amount deposited, the term of the CD in months and the interest rate and compounding frequency provided by your institution.

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Definitions

Initial deposit: The starting balance for your CD.
Months: The total number of months for this CD to mature.
Interest rate: The published interest rate for this CD. Make sure to enter the actual interest rate, not the Annual Percentage Yield (APY).
Annual percentage yield (APY): This is the effective annual interest rate earned for this CD. A CD's APY depends on the frequency of compounding and the interest rate. Since APY measures your actual interest earned per year, you can use it to compare CD's of different interest rates and compounding frequencies.
Compounding: Interest earned on your CD's accumulated interest. This calculator allows you to choose the frequency that your CD's interest income is added to your account. The more frequently this occurs, the sooner your accumulated interest income will generate additional interest. You may wish to check with your financial institution to find out how often interest is being compounded on your particular CD.