CD Calculator
What your CD earns at maturity — and exactly what an early withdrawal would cost
The advertised rate — compounding included
Typical: 3–6 for 1-yr CDs, 6–12 longer
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Quick summary
CDs quote APY, which already includes compounding: a $10,000 CD at 4.5% APY grows to $10,450 in 12 months, and multi-year terms compound the APY annually. The catch is the early-withdrawal penalty — typically 3–6 months of interest on 1-year CDs and 6–12 on longer terms. Withdraw early enough and the penalty exceeds interest earned, returning less than you deposited; the early-withdrawal mode models exactly that.
Reviewed by Simple Calculators TeamLast reviewed
For planning only — not financial or tax advice. Results are estimates based on your inputs and the stated assumptions. Confirm important decisions with a qualified professional.
How to use this calculator
- Enter the inputs requested by the calculator.
- Choose the units or options that match your situation and review the assumptions.
- Run or update the calculation to see the result.
- Review the result, breakdown, and formulas shown on the page.
- Check the inputs, units, dates, and limitations before saving or sharing the result.
Frequently asked questions
How is CD interest calculated?
From the APY, which bakes in compounding: value = deposit × (1 + APY)^years. A 3-year $10,000 CD at 4.5% APY matures at about $11,412. APY vs APR matters — APY is the true annual growth, which is why banks must advertise it.
What happens if I withdraw a CD early?
You pay a penalty, almost always expressed as months of interest — commonly 3–6 months on terms up to a year, 6–12 months beyond. If you haven't yet earned that much interest, the penalty comes out of principal: cashing out a 2-year CD in month 2 with a 6-month penalty returns less than you put in.
Are CDs worth it vs a high-yield savings account?
CDs win when you're confident you won't need the money and want to lock a rate — especially valuable when rates are falling, since your APY is fixed. HYSAs win on flexibility with rates that float. The classic hybrid is a CD ladder: split the money across staggered maturities so a portion frees up regularly.
Are CDs FDIC insured?
Yes — bank CDs carry the standard $250,000 FDIC coverage per depositor per bank (NCUA for credit unions). Brokered CDs bought through a brokerage are also insured but can behave differently if sold before maturity — market price, not a fixed penalty.
Key terms
- APY
- Annual percentage yield — growth per year with compounding included; the number CDs advertise.
- Early-Withdrawal Penalty
- Months of interest forfeited for breaking the term — it can cut into principal early on.
- CD Ladder
- Splitting savings across staggered terms so a rung matures at regular intervals.
- No-Penalty CD
- A variant allowing one free early withdrawal at a slightly lower APY.
Methodology, sources & limitations
This page shows the formula, assumptions, and limitations used for this estimate. Rates, thresholds, and other time-sensitive inputs can change, so verify them against the relevant official source before relying on a result.
For our review approach and the primary sources we consult, see the methodology and source policy. If you spot an outdated figure or formula, please contact us with a correction.