Calculate the future value of your Certificate of Deposit (CD) with this easy-to-use calculator.
Projected CD Value
$0.00
Understanding Your CD Growth
A Certificate of Deposit (CD) is a savings product that offers a fixed interest rate for a specified term. Unlike regular savings accounts, CDs typically require you to keep your money deposited for the entire term to avoid early withdrawal penalties. The growth of your CD depends on three key factors: the initial deposit, the annual interest rate, and how often the interest is compounded.
The Compound Interest Formula
The calculation for CD growth is based on the compound interest formula. Compound interest is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods. This means your money grows at an accelerating rate over time.
The formula used by this calculator is:
FV = P (1 + r/n)^(nt)
FV = Future Value of the investment/loan, including interest
P = Principal amount (the initial deposit)
r = Annual interest rate (as a decimal)
n = Number of times that interest is compounded per year
t = Number of years the money is invested or borrowed for
How This Calculator Works
Initial Deposit (P): This is the principal amount you initially invest in the CD.
Annual Interest Rate (r): This is the stated yearly interest rate of the CD. For the formula, it needs to be converted into a decimal (e.g., 5% becomes 0.05).
Compounding Frequency (n): This is how often the interest earned is added back to the principal. Common frequencies include annually (n=1), semi-annually (n=2), quarterly (n=4), monthly (n=12), or daily (n=365). A higher compounding frequency generally leads to slightly faster growth.
Term of CD (t): This is the duration, in years, for which the CD is held.
The calculator takes these inputs and applies the compound interest formula to project the total value of your CD at the end of its term, including all earned interest.
Why Use a CD Growth Calculator?
Planning: Estimate how much your savings will grow, helping you set financial goals.
Comparison: Compare different CD offers with varying rates and terms to find the best option.
Investment Strategy: Understand the potential returns of including CDs in your investment portfolio.
Financial Education: Visualize the power of compound interest and its impact on long-term savings.
By inputting different scenarios, you can gain a clearer picture of the potential returns and make more informed decisions about your savings and investments.
function calculateCDGrowth() {
var initialDeposit = parseFloat(document.getElementById("initialDeposit").value);
var annualInterestRate = parseFloat(document.getElementById("annualInterestRate").value);
var compoundingFrequency = parseInt(document.getElementById("compoundingFrequency").value);
var termInYears = parseFloat(document.getElementById("termInYears").value);
// Validate inputs
if (isNaN(initialDeposit) || initialDeposit < 0 ||
isNaN(annualInterestRate) || annualInterestRate < 0 ||
isNaN(compoundingFrequency) || compoundingFrequency <= 0 ||
isNaN(termInYears) || termInYears < 0) {
alert("Please enter valid positive numbers for all fields.");
document.getElementById("result-value").innerText = "$0.00";
return;
}
var ratePerPeriod = annualInterestRate / 100 / compoundingFrequency;
var numberOfPeriods = compoundingFrequency * termInYears;
// Calculate Future Value
var futureValue = initialDeposit * Math.pow(1 + ratePerPeriod, numberOfPeriods);
// Format the result to two decimal places
var formattedFutureValue = futureValue.toFixed(2);
// Display the result
document.getElementById("result-value").innerText = "$" + formattedFutureValue;
}