CD Calculator (Certificate of Deposit)

A certificate of deposit (CD) is a time deposit: you keep a sum of money at a bank for a fixed term (e.g. 3, 6, or 12 months) at a locked-in interest rate, and the bank compounds interest daily, monthly, or quarterly. Example: a $10,000 deposit at 4.5% per year compounded monthly for 12 months grows to $10,459.40, with $459.40 total interest.

Banks generally charge a penalty of several months’ interest when a CD is cashed out before maturity. This calculator applies a simple-interest penalty on the principal. Example: a $10,000 CD at 4.5% withdrawn in month 6 with a 3-month interest penalty — accrued value $10,227.12 minus a $112.50 penalty, for net proceeds of $10,114.62.

A CD ladder is a strategy of splitting funds across several CDs with different terms — e.g. 3, 6, 9, and 12 months — so that a CD is always maturing soon, providing periodic liquidity. Example: a $2,500 deposit at 4.25% for a 9-month term with monthly compounding becomes $2,580.83 ($80.83 interest).

No. This is an educational estimate, not financial advice. Banks use different rounding rules, compounding schedules, and penalty policies, and tax on interest is not computed here. Always confirm the final figures with your CD-issuing bank.

This calculator is CD-specific: fixed terms, bank-style compounding, early withdrawal penalties in months of interest, two-CD comparison, and laddering. It does not compute recurring deposits or inflation adjustments — for that, use our compound interest calculator.