CD Calculator

Free · no sign-up · reviewed September 2026

A certificate of deposit (CD) is one of the safest ways to earn interest: you lock up a set amount for a set time, and the bank guarantees the rate. This calculator shows exactly how much a CD will earn and what it'll be worth when the term ends.

Set your deposit, the APY the bank is offering, and the term. Because banks quote CDs as an annual percentage yield, the compounding is already baked in, so the result is what you'll actually walk away with.

Drag to adjust

Your numbers

Deposit amount

Interest rate (APY)

Banks quote CDs as APY, which already includes compounding. The FDIC's national average 12-month CD is 1.73% (Sep 1, 2026), held down by the big banks. Online banks pay well above it, so use the APY yours quotes.

Term

Value after 12 months

$10,425.00

$425 of guaranteed interest on your $10,000

💡 A 1-year CD at 4.25% APY turns your $10,000 into $10,425. That's $425 in interest, locked in and guaranteed, as long as you leave it alone until the term ends.

$10,425

At maturity

in 12 months

$425

Interest earned

guaranteed

4.25%

APY

locked-in rate

Your deposit$10,000
Interest earned$425

Deposit: $10,000
Term: 12 months
APY: 4.25%
Interest earned: $425
Value at maturity: $10,425

CD Calculator · Far Better Off

https://farbetteroff.com/calculators/cd-calculator

Open that link to get this calculator back with these exact numbers. Estimates for education only — Far Better Off is not a lender or a financial advisor, and these results are not financial advice.

The 2-minute guide

The trade-off: rate for access

A CD usually pays more than a regular savings account because you promise to leave the money untouched. Take it out early and you'll typically pay a penalty of a few months' interest. So only put money in a CD that you're confident you won't need before the term ends.

APY already includes compounding

You don't need to worry about 'how often does it compound' with a CD. The APY is the true, effective yearly rate after compounding, which is why it's the number to compare between banks. A higher APY is simply a better deal, full stop.

Consider a CD ladder

Instead of locking everything into one long CD, split it across several with different terms (say 6, 12, 18 and 24 months). As each one matures you get access to some cash and can reinvest at current rates. That keeps money reachable while still earning more than savings.

Frequently asked questions

How much does a CD earn?

It depends on your deposit, the APY and the term. For example, $10,000 in a 12-month CD at 4.25% APY earns about $425 in a year. Longer terms and higher APYs earn more. Enter your own numbers above to see the exact figure.

What happens when a CD matures?

At maturity you get your original deposit back plus all the interest. Most banks give you a short grace period to withdraw the money or roll it into a new CD. If you do nothing, many banks automatically renew it into a new CD at the current rate, so pay attention to the maturity date.

Is there a penalty for withdrawing a CD early?

Usually yes. Cashing out a CD before its term ends typically costs you a penalty of several months' worth of interest, and sometimes more on longer CDs. That's why you should only commit money you won't need during the term.

Are CDs safe?

CDs at FDIC-insured banks (or NCUA-insured credit unions) are insured up to $250,000 per depositor, per bank, so your principal is about as safe as money gets. The main risk isn't losing money, it's locking in a rate and then watching rates rise while your money is committed.

Related calculators

Savings Goal Calculator Compound Interest Calculator Emergency Fund Calculator

Embed this calculator

Free to use on your own site. Paste this where you want it to appear:

<iframe id="fbo-cd-calculator" src="https://farbetteroff.com/embed/cd-calculator" title="CD Calculator by Far Better Off" width="100%" height="1580" frameborder="0" style="border:0;max-width:600px;width:100%" loading="lazy"></iframe>
<script>window.addEventListener("message",function(e){if(e&&e.data&&e.data.type==="cw-embed-height"&&e.data.slug==="cd-calculator"){var f=document.getElementById("fbo-cd-calculator");if(f){f.style.height=e.data.height+"px"}}});</script>
<p style="font:13px/1.4 system-ui,sans-serif;text-align:center;margin:6px 0">Powered by <a href="https://farbetteroff.com/calculators/cd-calculator" target="_blank" rel="noopener">Far Better Off</a></p>

The little “Powered by Far Better Off” link keeps it free. Thanks for the credit!

Need a dark theme, a compact version for a sidebar, a different width or your own starting numbers? Customize it in the embed builder →

Or set them by hand — every field on CD Calculator, with the name to use and the values it takes: Starting-values reference →

On WordPress? One line instead of three.

With the free Far Better Off plugin installed, this shortcode is the same widget — and nothing for your editor or theme to strip:

[calcwise slug="cd-calculator"]

Download the plugin → Free, no account, and it adds a Far Better Off block too.