Certificate of Deposit Yield Calculator
Estimate how your funds grow when locked into a specific CD offer using the APY and term length provided by your institution.
Understanding CD Rates
Certificates of Deposit offer predictable returns by locking money for a fixed term. The APY reflects the compounding frequency over a year, so a 48-month CD with an APY of 3.75% grows more than a one-year CD, even if the nominal rate is the same. Because the funds are typically inaccessible without penalties, CDs suit conservative savers building a ladder or parking cash for a future goal.
The calculator compounds the deposit annually based on the APY and term you enter. If your institution compounds more frequently, match the effective APY they advertise so the calculation remains accurate. The tool also breaks output into total maturity value, the interest earned, and the average monthly increase, helping you compare against alternatives like high-yield savings accounts.
Example: A $10,000 deposit at 4.20% APY for 24 months grows to about $10,872.60, delivering $872.60 in earnings and roughly $36.35 of growth per month. Use those figures to judge if the rate compensates for the reduced liquidity.