How will the value of my CD change over time?
The amount of interest you can earn in a certificate of deposit (CD) can vary based on several factors, including current interest rates, the financial institution offering the CD, and more. Typically, once you deposit your money into a CD, the interest rate is fixed for the entire term of the CD. Early withdrawals may result in penalties and reduce the value of the CD.
Use our CD Interest Calculator below to estimate how much interest you can earn with different rates and term lengths.
Certificate of Deposit Calculator
How to use our CD calculator
You’ll need a few pieces of information to plug in, but all of this can be easily found on the CD provider’s page.
- Deposit amount: This is the amount of money you’ll put in a CD. Many CDs have a minimum required amount, while others allow flexibility.
- APY: The interest rate that CDs offer can vary wildly, largely depending on the bank and the CD’s term. Note, smaller banks and credit unions tend to offer some of the better CD rates.
- Term: How long are you willing or able to lock away your cash? All CDs have terms and most have early withdrawal penalties. While interest rates typically increase with longer terms, consider carefully whether you’ll need the money early before committing. The sweet spot these days, thanks to the Federal Reserve’s decision to raise interest rates to quash inflation, is a term length around one or two years.
In the results, you’ll see the total amount of interest the CD will provide if you keep it for the full term. You’ll also see your initial balance and the entire value at the end.