Your Estimated Earnings
Enter the details above to see your potential earnings.
Understanding CD Rates and Earnings
A Certificate of Deposit (CD) is a savings product offered by financial institutions like Mountain America Credit Union that offers a fixed interest rate for a specified term. When you open a CD, you agree to leave your money deposited for the entire term, and in return, you typically earn a higher interest rate than a standard savings account. This predictability makes CDs a good option for savers looking for guaranteed returns on their money, especially for short-to-medium term goals.
The Annual Percentage Yield (APY) is the rate of return earned on an investment, taking into account the effect of compounding interest. A higher APY means you'll earn more on your deposit over the same period. The term length also plays a crucial role; generally, longer terms may offer higher APYs, but they also mean your money is locked away for longer. Mountain America Credit Union often provides competitive rates across various term lengths, allowing members to choose the option that best suits their savings timeline and financial objectives.
When calculating your potential earnings, we use the initial deposit (principal), the APY, and the term in months. The APY is converted to a monthly interest rate to approximate the compounding effect over the term. The formula used is a simplified compound interest calculation:
Estimated Total Balance = Principal * (1 + (APY/100)/12)^(Term in Months)
Your estimated earnings are then calculated by subtracting the initial deposit from the estimated total balance.
var calculateCdEarnings = function() {
var principal = parseFloat(document.getElementById("principalAmount").value);
var apry = parseFloat(document.getElementById("annualPercentageRate").value);
var termMonths = parseInt(document.getElementById("termInMonths").value);
var resultDiv = document.getElementById("result");
if (isNaN(principal) || isNaN(apry) || isNaN(termMonths) || principal <= 0 || apry < 0 || termMonths <= 0) {
resultDiv.innerHTML = "Please enter valid positive numbers for all fields.";
return;
}
var monthlyRate = (apry / 100) / 12;
var totalBalance = principal * Math.pow(1 + monthlyRate, termMonths);
var totalEarnings = totalBalance – principal;
resultDiv.innerHTML =
"
Initial Deposit: $" + principal.toFixed(2) + "" +
"
APY: " + apry.toFixed(2) + "%" +
"
Term: " + termMonths + " months" +
"
Estimated Total Balance: $" + totalBalance.toFixed(2) + "" +
"
Estimated Earnings: $" + totalEarnings.toFixed(2) + "";
};
#cd-calculator-container {
font-family: sans-serif;
max-width: 800px;
margin: 20px auto;
padding: 20px;
border: 1px solid #ddd;
border-radius: 8px;
box-shadow: 0 2px 4px rgba(0,0,0,0.1);
}
#cd-calculator-form {
margin-bottom: 30px;
padding: 20px;
background-color: #f9f9f9;
border-radius: 6px;
}
#cd-calculator-form h2 {
margin-top: 0;
color: #333;
}
.form-group {
margin-bottom: 15px;
}
.form-group label {
display: block;
margin-bottom: 5px;
font-weight: bold;
color: #555;
}
.form-group input[type="number"] {
width: calc(100% – 12px);
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 1rem;
}
#cd-calculator-form button {
background-color: #007bff;
color: white;
padding: 12px 20px;
border: none;
border-radius: 4px;
cursor: pointer;
font-size: 1rem;
transition: background-color 0.3s ease;
}
#cd-calculator-form button:hover {
background-color: #0056b3;
}
#cd-calculator-result {
padding: 20px;
background-color: #e9ecef;
border-radius: 6px;
text-align: center;
}
#cd-calculator-result h3 {
margin-top: 0;
color: #333;
}
#result p {
margin-bottom: 10px;
font-size: 1.1rem;
color: #444;
}
#cd-calculator-explanation {
margin-top: 30px;
color: #666;
line-height: 1.6;
}
#cd-calculator-explanation h3 {
color: #333;
}
#cd-calculator-explanation p {
margin-bottom: 15px;
}
#cd-calculator-explanation strong {
color: #333;
}