Free · Any term · Locked APY

CD calculator

Calculate your Certificate of Deposit's maturity value. Enter the APY and term from the bank or credit union disclosure, then compare the projected maturity value with any early-withdrawal penalty.

CD rate context · Bank or credit-union disclosures; FDIC and NCUA insurance guidance

Compare the current term sheet before locking cash

CD APYs differ by institution, term, balance and call or withdrawal features. Recheck the issuer disclosure immediately before opening an account; a ladder trades some yield certainty for scheduled liquidity.

Most CD calculators assume rate parity. We surface the inversion because the 'should I ladder or lock' question only makes sense once you see the curve shape.

How to Calculate a CD's Maturity Value

Project the exact payoff of a Certificate of Deposit (CD) in four steps using daily compounding.

Step 1
Enter the deposit amount
Type the lump sum you plan to lock in (e.g., $25,000). CDs require a one-time deposit; no monthly contributions.
Step 2
Enter the CD's APY
Use the APY from the bank's or credit union's current disclosure (not an old comparison table). APY already incorporates the product's stated compounding frequency.
Step 3
Choose the term in months or years
Match the term to when you will need the cash. Short and long terms can have different APYs; use the current issuer disclosure and weigh rate certainty against liquidity.
Step 4
Read the maturity value and total interest
The calculator shows the projected contractual maturity value under the entered APY and term. Compare it with the institution's early-withdrawal penalty before committing.

CD rates and terms

Term	APY (check current disclosure)	Best use case
3-month	Check issuer	Short-term parking
6-month	Check issuer	Near-term goal funding
12-month	Check issuer	Most popular; balanced
24-month	Check issuer	Lock in if rates dropping
5-year	Check issuer	Maximum rate-cut hedge

Early withdrawal penalties

Early-withdrawal penalties depend on the issuer, term and account disclosure. Check those terms before treating a CD as cash that can be accessed early.

Short terms: the disclosure may specify a number of days or months of interest
Longer terms: the penalty may use a different period or calculation
No-penalty products: can have separate rate, minimum-balance or waiting-period rules

A $25,000 balance at a stated 5% APY is an illustration, not a penalty quote. Use the issuer's formula and match the term to the date you may need the cash.

CD laddering strategy

Split your CD money across 1, 2, 3, 4, and 5-year CDs. Each year one matures — reinvest it into a new 5-year CD at then-current rates. After 5 years you have a portfolio that's fully laddered: every year you get the highest (5-year) rate, plus liquidity Can improve flexibility compared with one long CD because a portion matures each year.

CD Calculator FAQ

How is CD interest calculated?

The issuer's disclosure states the calculation and crediting schedule. If the quoted 5% APY stays constant for a one-year illustration, $25,000 × 1.05 = $26,250 before taxes; APY is already the effective annual figure, so do not compound an APY a second time.

Is CD interest taxed?

Yes — taxed as ordinary income in the year it's earned (even if you don't withdraw it). The bank issues Form 1099-INT. Long-term CDs accruing interest annually trigger taxes each year, not just at maturity.

CD vs HYSA — which is better?

Compare the current APY, term, withdrawal rules and liquidity. A ladder can spread maturity dates; a HYSA keeps access flexible.

Is a CD FDIC-insured?

Yes — up to $250,000 per depositor per bank for FDIC-insured banks (NCUA for credit unions). Split larger amounts across multiple banks if needed; insurance coverage is per institution.

What's a no-penalty CD?

A no-penalty CD permits early withdrawal under the institution's stated conditions, usually with a different APY or minimum term. Check the current issuer disclosure for the waiting period, withdrawal process and rate before opening.

Should I buy a 5-year CD in 2026?

Use the current issuer APY and your cash horizon. Locking a longer term trades flexibility for rate certainty; a ladder can reduce the risk of choosing one maturity date.

Are CD rates going up or down in 2026?

There is no reliable direction to assume. Variable rates can change with market conditions, while a fixed CD rate is set by the issuer for the stated term. Check current offers before deciding.

What's the difference between APR and APY on a CD?

APR is a nominal stated rate, while APY (Annual Percentage Yield) reflects the product's compounding convention. The effective APY can be higher than the nominal rate when interest compounds; compare CDs using the APY and terms in the current disclosure.

Related calculators

CD ladder calculator

Stagger 5 CDs for annual liquidity + best 5-yr rate.

HYSA calculator

Liquid alternative at similar APY.

Best HYSA rates 2026 (guide)

HYSA vs CD vs T-Bills comparison table.

Savings account calculator

Any savings product, any APY.

Methodology and editorial standards

Each calculator uses its own inputs and method. Review the labels, units and assumption notes shown with the result. Costs, taxes, fees, benefits and other factors are not modeled unless the page or calculator explicitly says they are. A fixed-rate projection is a scenario, not a forecast or personalized recommendation.

The editorial standards explain how Snowballr reviews calculators and sources. The sources index links to references used across the site. To report an error or suggest a correction, use the contact page.