CD Calculator: Estimate Your Certificate of Deposit Interest and Total Value

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A certificate of deposit (CD) account can help you lock in a great rate on your savings. These accounts let you deposit money for a set period and earn interest during that time. At the end of the period, you can collect your original deposit, along with the interest that’s piled up.

But how much could your money grow? A CD calculator can help you find the answer.

Table of Contents

1. How a CD calculator works
2. How to calculate your CD earnings
   1. What is a good APY for a CD?
3. How to maximize CD savings
4. CDs vs. other savings accounts

How a CD calculator works

Our CD calculator can help you figure out how much interest you could earn. Before you start using it, let’s define what you’ll need to enter. 

• Initial deposit. This is the amount of money you plan to put into your CD. Most CDs only let you add money when you open the account, but some allow regular monthly deposits.
• Term. Your CD term is how long the bank expects you to keep your money in the account, measured in months or years. 
• Interest rate. This is the rate the bank will pay you during the CD term.
• Compounding interval. Compounding happens when you earn interest on your interest. The faster the compounding rate, the faster your CD grows. 
• Value at maturity. This is how much your CD is worth when the term ends.

A CD calculator uses the first four pieces of information—your opening deposit, term, interest rate, and compounding frequency—to calculate your CD’s value at maturity.

Now that you’ve got those terms down, you’re ready to use a CD calculator.

How to calculate your CD earnings

The great thing about a CD calculator is that you can customize it to fit the exact CD you want to open and the amount of money you can afford to deposit. Here’s how to use it to compare CDs, step by step.

1. Enter your initial deposit. Use the slider to adjust the number from $0 to $100,000.
2. Choose how to measure the CD term. Select months or years for your CD term.
3. Pick a term length. Use the slider to set your CD term length from 1 to 12 months.
4. Enter the interest rate. If you know the CD rate, enter it as a percentage.
5. Choose a compounding interval. CD interest can compound daily, monthly, quarterly, semi-annually, or annually. Check the box that matches the CD you’re thinking of opening.

Once you’ve entered everything in, you’ll see your results. Here are some examples of what you could earn. We’ll assume you deposit $5,000 into your CD, with interest compounding daily.

CD term	CD rate	Value at maturity
1 month	3.00%	$5,012.52
3 months	3.50%	$5,040.79
6 months	3.75%	$5,094.63
9 months	4.00%	$5,152.26
12 months	4.25%	$5,217.07

What is a good APY for a CD?

Annual percentage yield (APY) is the total amount of interest you’ll earn on a CD over a year, including the effects of compounding. It’s the best way to compare CD rates between banks because it shows your true annual return.

A good APY for a CD depends on the term length and what banks are paying on average. As of September 2025, the national average rate for a 12-month CD was 1.70%, so anything above that would be “good.” The best CD rates may be two to three times the average.

Longer terms can translate to a better CD rate, but not always. Banks can sometimes offer “special” CDs with shorter terms that offer the highest rates.

In addition to finding a great rate, be mindful of your intentions and goals around investing these funds into a CD. If you don’t need the funds you’re investing for four to five years, consider weighing the risks of investing these funds into the market in a semi-conservative allocation versus a CD. It may be possible to get a better return. On the flipside, if you’re really not sure how long you can afford to lock these funds away, exploring a no-penalty CD may be the better option

How to maximize CD savings

CDs can help you grow your money with minimal effort. Try these tips to make the most of them. 

• Build a CD ladder. CD laddering means opening multiple CDs with different terms and rates. As CDs mature, you can decide whether to renew them or withdraw the money.
• Keep an eye on rates. CD rates are tied to changes in the federal funds rate; if the Federal Reserve raises this rate or cuts it, CD rates can rise or fall. Tracking rate trends can help you time when to open a CD. 
• Try a no-penalty CD. Banks can charge penalties if you take money out of your CD before maturity. A no-penalty CD waives the fee for early withdrawals.

CDs vs. other savings accounts

CDs are one way to save and earn interest on your money. High-yield savings accounts (HYSA) are another. 

High-yield savings accounts pay above-average rates and often charge lower fees than traditional savings accounts. And, your money isn’t locked in the way it is with a CD. If you’re considering a high-yield savings account, pay attention to:

• Rates
• Minimum deposit requirements
• Minimum balance requirements
• Fees
• Account access

Some of the best savings accounts come from online banks. If you’re interested in a savings account at a brick-and-mortar bank, be prepared for lower rates and potentially higher fees. Of course, you could get the best of both worlds with a Capital One 360 CD, which pays competitive rates and offers branch access. 

Using a tool like this calculator can help you determine whether the interest earned is really worth it to you to have no access to your funds for the stated period. Sometimes, its better to explore other options such as brokerage accounts where you can invest in the market, or a high-yield savings account that is liquid but may be paying a slightly lower interest rate than a CD. Again, it all starts with your intention and goals around these funds and what you want to accomplish.