Marcus Marcus Certificate of Deposit (CD) Rate Calculator
A Certificate of Deposit (CD) is a savings product offered by banks and credit unions that provides an interest rate premium in exchange for the customer agreeing not to touch the money for a specified amount of time. CDs are a good option for savers who want a guaranteed rate of return and are comfortable locking away their funds for a fixed period. Marcus by Goldman Sachs offers a variety of CDs with competitive rates, making it a popular choice for many investors.
Using a CD rate calculator can help you understand the potential earnings on your investment. This calculator is specifically designed for Marcus CDs, allowing you to input your initial deposit, the APY (Annual Percentage Yield) offered by Marcus, and the term of the CD. The calculator will then estimate your total earnings and the final value of your investment after the CD matures.
Key terms to understand:
Principal: The initial amount of money you deposit into the CD.
APY (Annual Percentage Yield): The total amount of interest you will earn on your deposit over one year, including compounding. It's crucial to look at the APY as it provides a more accurate picture of your potential earnings than the simple interest rate.
Term: The length of time you agree to keep your money in the CD, typically in months or years.
Maturity Date: The date when your CD term ends and you can withdraw your funds without penalty.
Interest Earned: The total amount of money your CD has generated through interest.
Final Value: The sum of your principal and the total interest earned.
When considering a Marcus CD, it's important to compare the APY and term lengths with your financial goals. Longer terms often come with higher APYs, but they also mean your money is tied up for longer. This calculator can help you visualize the impact of different APYs and terms on your potential returns.
Calculate Your CD Earnings
function calculateCdEarnings() {
var principal = parseFloat(document.getElementById("principal").value);
var apy = parseFloat(document.getElementById("apy").value);
var termMonths = parseInt(document.getElementById("termMonths").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = ""; // Clear previous results
if (isNaN(principal) || isNaN(apy) || isNaN(termMonths) || principal <= 0 || apy < 0 || termMonths <= 0) {
resultDiv.innerHTML = "Please enter valid positive numbers for all fields.";
return;
}
// Calculate the monthly interest rate
var monthlyApyRate = (apy / 100) / 12;
// Calculate total interest earned over the term using compound interest formula
// A = P (1 + r/n)^(nt)
// Where:
// A = the future value of the investment/loan, including interest
// P = the principal investment amount (the initial deposit or loan amount)
// r = the annual interest rate (as a decimal)
// n = the number of times that interest is compounded per year
// t = the number of years the money is invested or borrowed for
// In our case, we are given APY, which already accounts for compounding within a year.
// We want to calculate the future value after 'termMonths'.
// We can approximate by compounding monthly.
var finalValue = principal * Math.pow(1 + monthlyApyRate, termMonths);
var totalInterestEarned = finalValue – principal;
resultDiv.innerHTML = "