Calculate the growth of your Certificate of Deposit investment
Months
Years
Daily
Monthly
Quarterly
Semi-Annually
Annually
Total Value at Maturity:
$0.00
Total Interest
$0.00
Effective Yield
0.00%
Understanding Your CD Growth
A Certificate of Deposit (CD) is a low-risk savings tool offered by banks and credit unions. When you open a CD, you agree to leave your money in the account for a fixed period (the "term") in exchange for a specific Annual Percentage Yield (APY).
How the Calculation Works
This calculator uses the compound interest formula to determine your final balance:
A = P(1 + r/n)^(nt)
A: The final maturity amount.
P: Your initial deposit.
r: The annual interest rate (decimal).
n: The number of times interest is compounded per year.
t: The time the money is invested for (in years).
Why Compounding Frequency Matters
The more frequently your interest is compounded, the faster your money grows. For example, daily compounding will yield a slightly higher return than annual compounding on the same APY, because you begin earning interest on your interest sooner.
Example CD Calculation
If you deposit $10,000 into a 24-month CD with a 5.00% APY compounded monthly:
Your total interest earned would be $1,049.41.
Your total maturity value would be $11,049.41.
Note: This calculator assumes the APY remains constant throughout the term and does not account for taxes or early withdrawal penalties.
function calculateCDMaturity() {
var p = parseFloat(document.getElementById('initialDeposit').value);
var annualRate = parseFloat(document.getElementById('apyValue').value) / 100;
var termValue = parseFloat(document.getElementById('termLength').value);
var termType = document.getElementById('termType').value;
var n = parseFloat(document.getElementById('compoundingFrequency').value);
if (isNaN(p) || isNaN(annualRate) || isNaN(termValue)) {
alert("Please enter valid numeric values.");
return;
}
// Convert term to years
var t;
if (termType === 'months') {
t = termValue / 12;
} else {
t = termValue;
}
// Compound Interest Formula: A = P(1 + r/n)^(nt)
// Note: Most banks use the APY to calculate the periodic rate.
// To be precise with APY, the formula is slightly different because APY already accounts for compounding.
// However, most consumer calculators use the stated APY as the 'r' for simplicity
// or calculate the periodic rate based on the compounding frequency.
// Standard APY to Periodic Rate calculation:
// Periodic Rate = (1 + APY)^(1/n) – 1
var periodicRate = Math.pow((1 + annualRate), (1 / n)) – 1;
var totalPeriods = n * t;
var maturityValue = p * Math.pow((1 + periodicRate), totalPeriods);
// Alternative standard simple compounding (often used if input is "Interest Rate" rather than APY):
// var maturityValue = p * Math.pow((1 + (annualRate / n)), (n * t));
var interestEarned = maturityValue – p;
var effYield = (Math.pow((maturityValue / p), (1 / t)) – 1) * 100;
// Update UI
document.getElementById('totalMaturityValue').innerHTML = '$' + maturityValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalInterestEarned').innerHTML = '$' + interestEarned.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('effectiveYield').innerHTML = effYield.toFixed(3) + '%';
document.getElementById('resultsArea').style.display = 'block';
}
// Initial calculation on load
window.onload = function() {
calculateCDMaturity();
};