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Certificate of Deposit (CD) Growth Calculator

Daily Monthly Quarterly Semi-Annually Annually

Projection Summary

Total Ending Balance: $0.00
Total Earnings: $0.00
Effective Yield (Total): 0.00%
Please enter valid positive numbers for all fields.
function calculateCDGrowth() { var deposit = parseFloat(document.getElementById('cd_deposit').value); var apy = parseFloat(document.getElementById('cd_apy').value) / 100; var months = parseFloat(document.getElementById('cd_term').value); var n = parseFloat(document.getElementById('cd_compounding').value); var errorBox = document.getElementById('cd_error'); var resultBox = document.getElementById('cd_result_box'); if (isNaN(deposit) || isNaN(apy) || isNaN(months) || deposit <= 0 || apy < 0 || months <= 0) { errorBox.style.display = 'block'; resultBox.style.display = 'none'; return; } errorBox.style.display = 'none'; var t = months / 12; // Formula: A = P(1 + r/n)^(nt) var totalBalance = deposit * Math.pow((1 + apy / n), (n * t)); var totalEarnings = totalBalance – deposit; var effectiveYield = (totalEarnings / deposit) * 100; document.getElementById('res_total').innerHTML = '$' + totalBalance.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('res_interest').innerHTML = '$' + totalEarnings.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('res_yield').innerHTML = effectiveYield.toFixed(2) + '%'; resultBox.style.display = 'block'; }

How to Use the CD Growth Calculator

A Certificate of Deposit (CD) is one of the safest ways to grow your savings. Unlike a standard savings account, a CD requires you to leave your money untouched for a set duration in exchange for a higher Annual Percentage Yield (APY). This calculator helps you determine exactly how much your investment will be worth at the end of its term.

Key Components of a CD Investment

  • Initial Deposit: The lump sum of money you commit to the account at the beginning of the term.
  • Annual Percentage Yield (APY): The effective rate of return taking into account the effect of compounding interest over a year.
  • Term Length: The duration of time (usually in months or years) that you agree to keep your funds in the account. Early withdrawal often results in penalties.
  • Compounding Frequency: How often the financial institution calculates interest and adds it back to your balance. The more frequent the compounding (e.g., daily vs. annually), the faster your money grows.

Example Calculation

Imagine you deposit 10,000 USD into a 24-month CD with an APY of 4.25%, compounded monthly. Using the calculator, your results would be:

  • Initial Investment: $10,000.00
  • Total Earnings: $885.35
  • Final Balance: $10,885.35

By locking the funds for two years, you earn significantly more than you might in a liquid checking account, providing a guaranteed return on your capital.

Why Compounding Frequency Matters

Compounding is the process where you earn "interest on your interest." While the APY reflects the annual growth, the specific frequency—daily, monthly, or quarterly—determines how quickly your principal balance grows throughout the term. Most modern high-yield CDs compound daily or monthly to maximize the benefit to the saver.

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