Certificate Of Deposit
Calculator
Results
- Value at maturity
- $1,050.00
- Interest earned
- $50.00
Certificate of deposit balance by year
| 0 | 1,000.00 | 0.00 |
| 1 | 1,050.00 | 50.00 |
Formula
A = P × (1 + r ÷ n)^(n × t)- P
- 1000.00
- r
- 0.05
- n
- 1
- t
- 1
= 1050.00
More in Financial
See all →Frequently asked questions
How is the maturity value of a CD calculated?+
The calculator compounds your deposit at the stated interest rate over the term, using the compounding frequency the bank applies, typically daily or monthly, so the maturity value reflects interest earning interest, not just simple growth.
Why do two CDs with the same rate produce different payouts?+
Compounding frequency matters: a CD that compounds daily will yield slightly more than one compounding monthly or annually at the same stated rate, because interest starts earning interest sooner.
What happens if I withdraw funds before the CD matures?+
Most banks charge an early withdrawal penalty, often a forfeiture of several months of interest, which this calculator does not subtract by default since penalty terms vary by institution — check your CD's specific terms before assuming early access is free.
Is the annual percentage yield (APY) the same as the interest rate?+
No. The interest rate is the nominal rate, while the APY already accounts for compounding within the year, so the APY is always equal to or slightly higher than the stated nominal rate.
Does the calculator account for taxes on the interest earned?+
No, the result shown is gross interest before tax. CD interest is generally taxable as ordinary income in the year it is earned or credited, so your actual after-tax return will be lower than the figure shown.