Quick Tools
CD Interest Rate Calculator
A certificate of deposit pays a fixed rate for a set term. Enter the deposit, APY or APR, term in months or years, and compounding frequency to see interest earned and the balance at maturity. If you enter APY, compounding is not applied a second time—APY already includes it. Switch to APR when a bank quotes a nominal rate and you need daily, monthly, quarterly, or annual compounding. Figures are gross estimates for comparing published CD offers. This is not a bank, not a rate lock, and not tax advice.
Frequently asked questions
What is the difference between APY and APR on a CD?
APY (annual percentage yield) is the effective yearly return after compounding. APR (annual percentage rate) is the nominal rate before compounding. Banks usually advertise CD APY because it is what you actually earn in a year if you leave the money untouched. This calculator treats APY as already compounded; it only applies compounding frequency when you enter APR.
How often do CDs compound?
Many U.S. bank CDs compound daily or monthly; some credit unions compound quarterly or annually. Compounding frequency matters when you have a nominal APR. If the quote is APY, the yield already reflects that schedule, so changing daily vs monthly here does not change the APY result.
Are early-withdrawal penalties included?
No. Breaking a CD before maturity often costs a set number of days or months of interest, and some banks can take principal if accrued interest is not enough. This tool assumes you hold to term. Confirm the penalty in the account disclosure before you open or cash a CD.
Is this a bank CD offer or a locked rate?
No. Quick Tools is not a bank, credit union, or broker. Nothing here is an offer, solicitation, or rate lock. Published CD rates change, may require a minimum deposit, and can differ by term and relationship. Use the numbers only to estimate interest from a rate you already saw.
How do I estimate CD interest from APY and term?
Convert the term to years, then ending balance = deposit × (1 + APY)^years, and interest = ending balance − deposit. Example: $10,000 at 4.50% APY for 12 months is $10,000 × 1.045 = $10,450, so $450 of interest. For 18 months use 1.5 years. Do not also apply monthly compounding on top of APY.
Is CD interest taxed?
This calculator shows gross interest before tax. In the U.S., CD interest is generally taxable as ordinary income in the year it is credited, even if you do not withdraw it, unless the CD is in a tax-advantaged account. Withholding, state tax, and reporting rules vary. This is not tax advice; check IRS guidance or a tax professional.