Calculate your certificate of deposit growth and final maturity value.
Months
Years
Daily
Monthly
Quarterly
Semi-Annually
Annually
Total at Maturity:$0.00
Total Interest Earned:$0.00
What is a Certificate of Deposit (CD)?
A Certificate of Deposit (CD) is a type of savings account offered by banks and credit unions that typically provides a higher Annual Percentage Yield (APY) than a standard savings account. In exchange for this higher yield, you agree to leave your initial investment untouched for a fixed period, known as the term.
How CD Interest Compounding Works
The growth of your CD depends heavily on the compounding frequency. Compounding is the process where the interest you earn begins to earn interest itself. This calculator uses the standard compound interest formula:
A = P (1 + r/n)^(nt)
A = The final amount (Maturity Value)
P = Initial investment amount
r = APY (decimal)
n = Number of times interest compounds per year
t = Number of years the money is invested
Realistic CD Investment Example
Suppose you invest 10,000 USD into a 24-month CD with an APY of 5.00% that compounds monthly. Using this calculator, you would find:
Initial Principal: 10,000 USD
Total Interest Earned: 1,049.41 USD
Maturity Value: 11,049.41 USD
Understanding CD Terms and APY
Unlike standard interest rates, the Annual Percentage Yield (APY) reflects the total amount of interest you earn in one year, accounting for the effect of compounding. When comparing different bank offers, the APY is the most accurate metric to determine which CD will provide the highest return. Common CD terms range from 3 months to 5 years. Generally, longer terms offer higher yields because you are committing your capital for a longer duration.
Key Benefits of Investing in a CD
Guaranteed Returns: Your yield is locked in for the entire term, protecting you from falling rates.
Safety: Most CDs are FDIC or NCUA insured up to 250,000 USD, making them one of the safest investment vehicles available.
Discipline: Because early withdrawal usually incurs a penalty, CDs encourage long-term saving habits.
function calculateCDValue() {
var principal = parseFloat(document.getElementById("depositAmount").value);
var apy = parseFloat(document.getElementById("apyValue").value);
var term = parseFloat(document.getElementById("termLength").value);
var unit = document.getElementById("termUnit").value;
var n = parseFloat(document.getElementById("compoundingFreq").value);
var resultsDiv = document.getElementById("cdResults");
// Basic validation
if (isNaN(principal) || isNaN(apy) || isNaN(term) || principal <= 0 || apy < 0 || term <= 0) {
alert("Please enter valid positive numbers for all fields.");
return;
}
// Convert term to years
var t = (unit === "months") ? (term / 12) : term;
// Convert APY percentage to decimal
var r = apy / 100;
// Formula: A = P * (1 + r/n)^(n*t)
// Note: For daily compounding, banks often use 365 or 360. We use 365.
var maturityValue = principal * Math.pow((1 + (r / n)), (n * t));
var interestEarned = maturityValue – principal;
// Display results
document.getElementById("maturityBalance").innerText = "$" + maturityValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("totalInterest").innerText = "$" + interestEarned.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
resultsDiv.style.display = "block";
resultsDiv.scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}