- Calculating CD interest by hand can be tedious, but our online CD calculator performs the calculations for you immediately.
- How much you’ll earn on a CD depends on its term, compounding frequency, APY and the amount of your initial deposit.
- Compare CD terms and APYs before you choose the right fit for your financial goals.
- Early withdrawal penalties will impact the potential earnings on a CD, so it’s best to opt for a CD term you are comfortable with.
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CD Calculator: Calculate Your Earnings
Reviewed By
Blake Esken - Los Angeles Times
CD Calculator
Total interest earned
0
Total ending balance
0
Important Note: The figures provided on this platform are meant for general information purposes only and should not be considered financial advice. We strongly encourage you to check with the specific financial institution for an accurate estimate before applying for any financial product.
Advertiser Disclosure
Barclays 6-month CD
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FDIC insured
rates_last_updated
rates_last_updated
APY
4.50%
Term Length
6 months
Minimum Opening Deposit
$min_deposit
Why We Like It
Editor's take
The Barclays 6-month CD is a strong option if you are looking for flexibility and growth. The interest rate is competitive interest without needing to keep your money for too long. Its daily compounding interest means your balance grows faster than with monthly or annual compounding. There are no maintenance fees or minimum balance requirements. The 6-month CD rates from Barclays are accessible to a wide range of savers. Barclays doesn’t have physical branches as an online-only bank. If you’re comfortable managing your accounts online, this CD offers a good mix of convenience and growth with easy access to your money.
PROS
- Competitive APY
- No minimum deposit required
- Initial deposit isn’t due until 14 days after account opening
- Insured by the FDIC
CONS
- Must maintain a balance that would earn at least 1 cent if you want the interest to post to your account
- Early-withdrawal penalty
- No physical branch locations
How to calculate CD interest
You can easily calculate your CD returns in seconds with our CD calculator.
Just input the following details:
1
Deposit amount
Enter the amount of your initial deposit, which is how much you can comfortably invest in a CD without accessing it during the CD’s term.
2
CD term length
Enter the CD’s term length in months using whole numbers. For example, if a CD’s term is 1.5 years, you would enter 18 months.
3
APY
Enter the CD’s APY. To compare different CDs, enter advertised CD rates from various banks.
Then click the red Click Me To Calculate button. You’ll then see the interest you’ll earn and the total value of your CD at maturity.
Alternatively, you can calculate how much interest you’ll earn on paper using the formula:
Interest = P x r x t
Where:
- P is the principal amount (or initial deposit)
- R is the APY (expressed as a decimal)
- T is the term length (in years)
You can then add this amount to your initial deposit to find the total value of your CD at maturity.
How much interest will I earn on a CD?
The interest earned from a CD depends on its annual percentage yield (APY), compounding frequency and term length. These factors make it important to compare rates and terms when choosing the best CD for you.
To illustrate how these factors affect your earnings, take a look at how APY affects the ending balances of a one-year CD in the table below:
| APY | Interest Earned on $1,000 after One Year | Total Ending Balance |
|---|---|---|
| 1.85% | $18.50 | $1,018.50 |
| 4.50% | $45.00 | $1,045.00 |
| 5.00% | $50.00 | $1,050.00 |
| 5.50% | $55.00 | $1,055.00 |
| 6.00% | $60.00 | $1,060.00 |
Understanding your CD calculator results
To understand your CD interest calculator results, it’s important to know that CD rates are expressed as an annual percentage yield (APY). A CD’s APY refers to how much interest it will earn during a year while accounting for compounding.
By contrast, annual percentage rate (APR) is used for credit cards, personal loans and other debt-related products and refers to how much interest is charged in a year while accounting for the monthly interest of the debt account. The APY more accurately represents a CD’s net gains, which is why CDs use APY instead of APR rates.
The CD’s future value is the total amount you can expect your CD investment to grow by the end of its term, assuming you do not make an early withdrawal, for which you may have to pay a penalty.
CDs pay higher interest rates than even some of the best savings accounts but have less liquidity. Additionally, the APY is fixed for the CD’s entire term, providing you with guaranteed earnings at maturity.
For example, if you deposit $2,000 into a three-year CD with a 5.0% APY, you can expect the following results:
| Deposit | Interest earned at the end of year one | Interest earned at the end of year two | Interest earned at the end of year three | Total interest earned | Future value of CD |
|---|---|---|---|---|---|
| $2,000 | $102 | $108 | $113 | $323 | $2,323 |
As you can see, when the CD reaches maturity, the total amount within the account will be $2,323.
CD terms to know
To understand your calculated results for a CD, you must know the following terms:
- Initial deposit: The initial deposit is how much money you deposit into a CD account. Most CDs allow you to make only a single deposit, and some banks and credit unions set minimum deposit amounts before you can open a CD.
- Term length: A CD’s term refers to how long you promise to keep your initial deposit in the account. If you withdraw money early, you’ll have to pay a penalty. CD terms range from a few months to seven years.
- Compounding frequency: Banks compound interest at different frequencies—some compound interest each day while others compound interest monthly.
- APY: Banks express CD earnings as its annual percentage yield (APY), which tells you how much interest you’ll earn during a year with a CD deposit. The APY is the net gain you’ll realize and accounts for the effect of compound interest.
- Maturity date: A CD’s maturity refers to the end of its term. Withdrawing money from your CD before it matures could result in an early withdrawal penalty. Most banks charge fees for withdrawing money from an account before it matures, and you might have to forfeit any interest you earned before that date. Our calculator assumes you will not make an early withdrawal.
Considerations when opening a CD
Before you open a CD, you need to evaluate several factors to determine whether doing so would be a good choice for meeting your financial goals.
Term length
A CD’s term length is how long you leave your money in the account without making withdrawals. When you open a CD, you agree to leave your deposit untouched until the end of its term, which is when it matures. CD term lengths vary, so consider a CD’s term before opening an account.
Interest rates
Banks offer varying APYs for CDs. While long-term CDs usually pay the highest APYs, some short-term CDs, such as three-month CDs and six-month CDs, offer competitive rates today. It’s best to choose a CD that pays the most interest for the term you desire.
Minimum deposit
Some banks and credit unions require minimum deposits to open a CD. Consider whether you can afford to deposit at least the minimum required amount without needing access to the funds for the CD’s term.
Early withdrawal penalties
Under federal law, banks and credit unions must assess a minimum penalty of seven days’ simple interest when you withdraw funds from a CD early. However, the government doesn’t set a maximum penalty, and many financial institutions assess additional penalties.
In some cases, you might forfeit the interest you earned while your money remains in the account when you withdraw early. Carefully assess whether you can afford to leave your money in a CD for its entire term.
FAQ: CD Calculator
How much will a $10,000 CD earn in five years?
How much a $10,000 CD will earn in five years depends on its APY. For example, depositing $10,000 into a CD that pays 4.5% APY will earn $2,518 in five years for a final balance of $12,518. By contrast, depositing $10,000 in a 6% interest CD will earn $3,489 in five years for a final balance of $13,489.
How do you calculate interest on a CD?
To calculate interest on a CD, you can use the following formula: Interest = P x r x t
This formula will allow you to see the future value of your CD based on your initial deposit, the interest rate and the CD term.
If you’d rather not calculate this by hand, you can use our CD calculator to receive results in a second.
How much can you make on a 5% CD?
How much you make on a 5% CD depends on your initial deposit and the CD’s term length. For example, if you deposit $1,000 in a CD with a 5% APY and a term of one year, you’ll earn $50 for a final balance of $1,050. If you deposit $1,000 in a 5% CD with a term of two years, you’ll earn $105 in interest for a final balance of $1,105.
What if I put $20,000 in a CD for five years?
If you put $20,000 in a CD for five years, you’ll need to understand that the account is illiquid, meaning you won’t be able to access your funds for the five-year term. As long as you’re comfortable with that and have an established emergency fund, how much you earn depends on the APY offered by the bank.
At the average APY of 1.42%, you’ll earn $1,461 in interest in five years for a future value of $21,461. By contrast, if you deposit $20,000 in a CD with an APY of 6.00%, you’ll earn $5,526 in interest for a future value of $25,526.
Is it worth putting money into a CD?
Investing money in a CD is worthwhile if you can afford not to touch the funds during the CD’s term, have a conservative risk profile, are nearing retirement or are saving for a specific financial goal.
If you are less risk-averse, are young and have a long time to save, you might be better off investing your money in stocks or bonds because of the potential to earn higher returns.
How do you apply for a CD?
Many banks allow you to apply online, in person at a bank branch or over the phone. You must provide a valid government-issued ID and a U.S. residential address. Choose whether you want to leave the interest in the CD or receive it periodically. Once you have chosen and submitted your application, you must sign some documents and make your deposit.
How much will a $100,000 CD earn in one year?
How much $100,000 in a one-year CD will earn depends on its APY. For example, many online banks and credit unions offer CDs with an APY of 5.5%. In this case, $100,000 in a one-year CD would earn $5,500.
About the Author
Christy Montour is a seasoned finance writer with extensive experience in explaining a wide range of investment types, retirement accounts, and insurance products. With a background in taxation from law school, Christy possesses a deep knowledge of tax strategies and the tax code.
Christy has written thousands of blogs for clients on finance and investment topics. She covers a wide range of subjects, from the Offshore Voluntary Disclosure Program to IRS installment plans, offers-in-compromise, tax liens, levies, and criminal tax issues such as tax evasion and fraud. Christy’s expertise allows her to break down complex financial topics into clear, accessible content for her readers.
About the Reviewer
Blake Esken has over 15 years of experience in product management and has been a member of the Los Angeles Times staff for over five years.
As part of his role at the Los Angeles Times Commerce Team, Blake acts as the in-house reviewer and fact checker for LA Times Compare. He supervises all content for compliance and accuracy and puts to use skills he has honed through years of experience managing high-stakes projects for a range of industry-leading companies.
He has a strong background in data analysis, compliance, and communication, which allows him to support LA Times Compare through fact-checking in an effort to provide up-to-date and factual information across our content.
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