CD Interest Estimator

Estimate what a certificate of deposit (CD) will earn by the time it matures. For compound interest, enter your CD’s interest rate, its APY, or both.

Type of interest

CD amount ($)

Duration (months)

Interest rate (%)

APY (%)Banks usually list both. If you enter only one, we work out the other.

Compounding frequency Only used to convert between the rate and the APY when you enter just one of them. Daily is common for CDs.

How it works

With compound interest, your balance grows by the APY, which already includes the effect of compounding: ending balance = amount × (1 + APY) raised to the power of months ÷ 12. With simple interest, you earn the interest rate on the original amount only: interest = amount × rate × months ÷ 12.

For compound interest, if you enter only the APY we convert it to an interest rate for the compounding frequency you choose, and if you enter only the interest rate we convert it to an APY. If you enter both, we use the APY. Simple interest doesn’t compound, so its APY is the same as its interest rate, and you enter just one number.

This estimate leaves out early withdrawal penalties, rate changes at renewal, and taxes. CD interest is generally taxable as ordinary income in the year it’s credited, even if you don’t withdraw it. Deposits at FDIC-insured banks are covered up to $250,000 per depositor, per bank, per ownership category.

Estimates only. Your bank’s figures may differ slightly because of how it credits interest. See our disclaimer.