Free Cd Calculator

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Certificate of Deposit (CD) Calculator

Months Years
Daily Monthly Quarterly Semi-Annually Annually

Calculation Summary

Ending Balance:

Total Interest Earned:

What is a CD Calculator?

A Certificate of Deposit (CD) calculator is a specialized financial tool designed to help you estimate the future value of a fixed-term investment. Unlike standard savings accounts, CDs typically offer higher interest rates in exchange for leaving your funds untouched for a specific period of time.

How to Use the CD Calculator

  1. Initial Deposit: Enter the starting amount of money you plan to place in the CD.
  2. Annual Percentage Yield (APY): This is the effective annual rate of return. Bank rates change frequently, so check current market rates.
  3. Term: Define how long your money will be "locked" in the account (e.g., 6 months, 1 year, or 5 years).
  4. Compounding Frequency: Select how often interest is added to your principal. Most modern banks compound interest daily or monthly.

Why CDs Are a Secure Investment

Certificates of Deposit are favored by conservative investors because they are generally insured by the FDIC (for banks) or NCUA (for credit unions) up to $250,000. They provide a guaranteed rate of return, making them ideal for short-to-medium-term financial goals where capital preservation is key.

Example Calculation

If you invest 10,000 in a 24-month CD with a 5.00% APY compounded monthly:

  • Total Interest: Approximately 1,049.41
  • Final Balance: Approximately 11,049.41

By using this free CD calculator, you can compare different bank offers and term lengths to maximize your passive income potential.

function calculateCD() { var principal = parseFloat(document.getElementById('cdPrincipal').value); var apy = parseFloat(document.getElementById('cdApy').value) / 100; var term = parseFloat(document.getElementById('cdTerm').value); var termUnit = document.getElementById('cdTermUnit').value; var compoundFreq = parseFloat(document.getElementById('cdCompounding').value); if (isNaN(principal) || isNaN(apy) || isNaN(term) || principal <= 0) { alert("Please enter valid positive numbers for all fields."); return; } // Convert term to years for the formula var timeInYears = (termUnit === "months") ? (term / 12) : term; // Formula for Compound Interest: A = P(1 + r/n)^(nt) // Note: APY already accounts for compounding if used as the base, // but for traditional CD math, we calculate based on the periodic rate. // However, most calculators use the standard compound interest formula: var amount = principal * Math.pow((1 + (apy / compoundFreq)), (compoundFreq * timeInYears)); var interest = amount – principal; document.getElementById('resTotal').innerText = amount.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resInterest').innerText = interest.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('cdResult').style.display = 'block'; }

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