Calculate the growth of your Certificate of Deposit based on APY and compounding frequency.
Months
Years
Daily
Monthly
Quarterly
Semi-Annually
Annually
Total Interest Earned:$0.00
Final Balance:$0.00
Understanding CD Rate of Return
A Certificate of Deposit (CD) is a low-risk savings instrument offered by banks and credit unions. Unlike a standard savings account, a CD requires you to lock your money away for a fixed period in exchange for a higher interest rate.
How the Calculation Works
This calculator uses the compound interest formula to determine your future value:
A = P(1 + r/n)nt
P: The initial deposit you make into the CD.
r: The Annual Percentage Yield (converted to a decimal).
n: The number of times interest compounds per year.
t: The length of the term in years.
APY vs. Interest Rate
The Annual Percentage Yield (APY) reflects the total amount of interest you earn in a year, including the effect of compounding. Because CDs often compound monthly or daily, the APY is slightly higher than the nominal interest rate. When comparing CDs, always look at the APY to see the true earning potential.
Example Scenario
If you deposit 10,000 into a 24-month CD with a 5.00% APY compounding monthly, you would earn approximately 1,049.41 in interest, resulting in a total balance of 11,049.41 at the end of the term. This calculator helps you visualize these gains instantly so you can compare different bank offers.
function calculateCDReturn() {
var deposit = parseFloat(document.getElementById('initialDeposit').value);
var apy = parseFloat(document.getElementById('apyRate').value) / 100;
var term = parseFloat(document.getElementById('termLength').value);
var unit = document.getElementById('termUnit').value;
var compoundsPerYear = parseInt(document.getElementById('compounding').value);
if (isNaN(deposit) || isNaN(apy) || isNaN(term)) {
alert("Please enter valid numerical values.");
return;
}
// Convert term to years for the formula
var t = (unit === 'months') ? (term / 12) : term;
// Compound Interest Formula: A = P(1 + r/n)^(nt)
// Note: APY already factors in compounding, but for precise period calculation
// from a stated APY back to effective rate:
// Since banks usually list the APY, the math for final balance is often
// simply Balance = Principal * (1 + APY)^t for annual,
// but we provide the standard compound formula for specific frequencies.
// To be most accurate to bank calculators using APY:
var finalValue = deposit * Math.pow((1 + apy/compoundsPerYear), (compoundsPerYear * t));
var totalInterest = finalValue – deposit;
// Display Results
document.getElementById('totalInterest').innerText = '$' + totalInterest.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('finalBalance').innerText = '$' + finalValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('cd-results').style.display = 'block';
}