CD Rate Calculator
See exactly how much your certificate of deposit will earn. Enter your deposit amount, interest rate, term length, and compounding frequency to calculate the maturity value, total interest earned, and effective APY.
A certificate of deposit (CD) locks your money away for a fixed term in exchange for a guaranteed interest rate. The math: FV = P(1 + r/n)^(nt), where P is the deposit, r is the annual rate, n is compounding frequency, and t is time in years.
For example, $10,000 deposited at 4.5% APY for 12 months with daily compounding grows to $10,460.25, earning $460.25 in interest. The same deposit for 24 months earns $940.70 -- slightly more than double the 12-month interest because of compounding.
CD Term Comparison
Longer terms generally offer higher rates, but you sacrifice liquidity. Here is a typical rate ladder:
- 3-6 month CD: 4.0-4.25% -- maximum flexibility, lower rate
- 12 month CD: 4.25-4.75% -- the sweet spot for most savers
- 24-36 month CD: 4.0-4.5% -- locks in today's rate longer
- 60 month CD: 3.75-4.25% -- highest rate risk if rates rise
CD Laddering Strategy
Instead of putting all your money in one CD, split it across multiple terms. For example, divide $50,000 into five $10,000 CDs with terms of 1, 2, 3, 4, and 5 years. As each CD matures, reinvest it into a new 5-year CD. After 5 years, you have a CD maturing every year while earning the higher long-term rate on most of your money.