CD Calculator: How Much Will Your CD Earn?
How much will my CD earn? This CD calculator shows the interest and the final balance of a certificate of deposit. Enter the deposit, the APY and the term, and see the result at maturity with a chart of how the balance grows.
Quick answer
A CD earns deposit × ((1 + APY)^(years) − 1). A $10,000 CD at 4.25% APY for 1 year earns about $425. A $50,000 CD at 4% APY earns about $2,000 in 1 year and $10,833 in 5 years, if interest stays in the CD.
How to use the CD calculator
- Deposit: the amount you put in the CD.
- APY: the annual percentage yield offered by the bank or credit union.
- Term: how long the money stays in the CD, from 3 months to 5 years.
CD interest examples
| $50,000 CD | 6 months | 1 year | 3 years | 5 years |
|---|---|---|---|---|
| 3.5% APY | $867 | $1,750 | $5,436 | $9,384 |
| 4% APY | $990 | $2,000 | $6,243 | $10,833 |
| 4.5% APY | $1,113 | $2,250 | $7,058 | $12,309 |
| 5% APY | $1,235 | $2,500 | $7,881 | $13,814 |
How CDs work
- You deposit a fixed amount for a fixed term.
- The rate is usually locked for the whole term, so it does not drop if market rates fall.
- At maturity you can withdraw the money or roll it into a new CD.
- CDs at FDIC-insured banks (or NCUA-insured credit unions) are protected up to the legal limit.
Early withdrawal penalties
If you take money out before the term ends, banks usually charge a penalty, often a few months of interest. Before opening a CD, check the penalty and make sure you will not need the money. For money you might need anytime, a high-yield savings account may be a better fit. A CD ladder can give you both higher rates and regular access.
What this CD calculator means for you
- Compare CDs by APY and term, and read the early withdrawal penalty.
- Longer terms lock a rate for longer, which helps if rates are falling.
- Interest is usually taxable in the year it is earned, even if it stays in the CD.
Frequently asked questions
How much interest does a $10,000 CD earn?
At 4.25% APY for 1 year, about $425. At 5% APY for 1 year, about $500.
Is CD interest compounded?
Usually yes, often daily or monthly. The APY already includes compounding, so the CD calculator uses it directly.
Can I lose money in a CD?
Not at an insured bank within the insurance limit, except through early withdrawal penalties, which can eat into interest.
What happens when a CD matures?
You usually have a short grace period to withdraw or change the CD. If you do nothing, many banks renew it automatically at the current rate.
Is CD interest taxable?
Yes, CD interest is generally taxable income in the year it is credited, unless the CD is inside a tax-advantaged account such as an IRA.
Related guides and calculators
- How much interest does $50,000 earn in a CD?
- CD ladder explained
- CD vs high-yield savings account
- APY calculator
Sources
This guide is for educational purposes only and is not financial advice. The figures are estimates before taxes, fees and inflation, and real rates, returns and rules change over time.
