Enter your initial deposit amount, the APY (Annual Percentage Yield) offered by the bank, the CD term in months, and the compounding frequency. The calculator instantly shows your total value at maturity, total interest earned, and the early withdrawal penalty.

The growth chart shows how your balance increases month by month. Download the schedule as CSV or PDF for your records.

A Certificate of Deposit (CD) is a type of savings account offered by banks and credit unions that pays a fixed interest rate for a set term — typically ranging from 3 months to 5 years. In exchange for locking up your money, you receive a higher interest rate than a regular savings account.

APY vs. Interest Rate

The APY (Annual Percentage Yield) reflects the total amount of interest you earn in one year, including the effect of compounding. A CD advertised at 4.75% APY with daily compounding will earn slightly more than one with the same nominal rate but monthly compounding, because interest is calculated more frequently.

Early Withdrawal Penalties

If you withdraw funds from a CD before its maturity date, you'll typically pay an early withdrawal penalty — usually equivalent to several months of interest. Common penalties are: 3 months of interest for CDs under 1 year, 6 months for 1-year CDs, and 12 months for CDs of 3+ years. Some banks offer "no-penalty" CDs, but these usually come with lower APYs.

CD Laddering Strategy

A CD ladder involves spreading your deposit across multiple CDs with staggered maturity dates (e.g., 6-month, 12-month, 18-month, and 24-month CDs). As each CD matures, you reinvest it into a new long-term CD. This strategy balances higher long-term rates with regular access to a portion of your funds.