Calculate your potential earnings on a Marcus by Goldman Sachs Certificate of Deposit (CD).
Your Estimated CD Earnings
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This is an estimate. Actual earnings may vary.
Understanding Marcus CD Calculator & CD Investments
A Certificate of Deposit (CD) is a savings product offered by banks and credit unions that allows you to earn interest on your money over a fixed period. Marcus by Goldman Sachs offers a variety of CDs known for competitive interest rates. This calculator helps you estimate the potential growth of your investment in a Marcus CD.
How the Calculator Works
The Marcus CD calculator uses a compound interest formula to project your earnings. It takes into account:
Initial Deposit: The principal amount you invest at the beginning.
Annual Interest Rate: The yearly rate at which your money grows, expressed as a percentage.
CD Term (Months): The duration for which your money is locked in.
The calculation assumes interest is compounded and paid out at the end of the term, which is a common structure for many CDs. The formula used is a simplified version of the compound interest formula, adapted for CD terms, to estimate the total amount at maturity.
Formula Used (Simplified for illustrative purposes):
The calculator estimates the total amount at the end of the term using the following logic:
Total Amount = Principal * (1 + (Annual Interest Rate / 100) * (Term in Months / 12))
This formula approximates the total value by considering the prorated interest for the given term. For more precise calculations involving daily compounding or monthly interest crediting, a more complex formula would be required.
Key Terms Explained
Principal: This is the initial sum of money you deposit into the CD.
Annual Interest Rate (APY): The percentage yield you can expect to earn over a year. APY (Annual Percentage Yield) accounts for compounding.
Term: The length of time your money is deposited in the CD. Common terms include 3 months, 6 months, 12 months, 18 months, 2 years, 3 years, and 5 years.
Maturity Date: The date when your CD term ends.
Early Withdrawal Penalty: If you withdraw funds before the maturity date, you will typically incur a penalty, which can reduce your principal and/or earned interest.
Why Choose a Marcus CD?
Marcus CDs are popular for their potential to offer higher interest rates compared to traditional savings accounts. They provide a safe way to grow your savings with a guaranteed return, provided you don't withdraw funds early. They are FDIC-insured up to the legal limits, meaning your principal is protected.
When to Use This Calculator
Use this calculator when you are:
Considering opening a Marcus CD.
Comparing different CD terms and interest rates offered by Marcus.
Planning your savings goals and want to estimate potential returns.
Trying to understand how much interest you might earn on a lump sum over a specific period.
Example: If you deposit $10,000 into a 2-year CD with an APY of 4.75%, this calculator will help you estimate the total amount you will have at the end of the 2-year term, including your initial deposit and the accrued interest.
function calculateCDEarnings() {
var initialDeposit = parseFloat(document.getElementById("initialDeposit").value);
var annualInterestRate = parseFloat(document.getElementById("annualInterestRate").value);
var termInMonths = parseFloat(document.getElementById("termInMonths").value);
var resultElement = document.getElementById("finalAmount");
// Input validation
if (isNaN(initialDeposit) || initialDeposit <= 0) {
resultElement.textContent = "Please enter a valid initial deposit.";
return;
}
if (isNaN(annualInterestRate) || annualInterestRate < 0) {
resultElement.textContent = "Please enter a valid annual interest rate.";
return;
}
if (isNaN(termInMonths) || termInMonths <= 0) {
resultElement.textContent = "Please enter a valid term in months.";
return;
}
// Calculation using a simplified compound interest approach for CD terms
// This formula approximates the growth based on the term length
var interestPerPeriod = annualInterestRate / 100; // Convert percentage to decimal
var numberOfPeriods = termInMonths / 12; // Express term in years
// Simple interest calculation for the term: Principal * Rate * Time
// This is a common way to estimate CD growth over a fixed term.
// For true compound interest, a more complex iterative formula would be needed if interest were compounded more frequently than annually and credited separately.
// Given typical CD structures (interest paid at maturity or annually), this simplified approach is often used for estimations.
var totalInterestEarned = initialDeposit * interestPerPeriod * numberOfPeriods;
var finalAmount = initialDeposit + totalInterestEarned;
// Display the result, formatted to two decimal places
resultElement.textContent = "$" + finalAmount.toFixed(2);
}