# CD Calculator

Use our CD calculator to estimate how much you will make on a CD deposit. Just input your initial deposit, term of the CD, and APY to determine your ending balance.

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When you are considering purchasing a Certificate of Deposit (CD), the initial deposit, term of the CD and APY all determine how much interest you will earn. Our simple CD calculator helps you find how much you will earn.

$60 months % Annual percentage yield Total balance$11,122.23
Your deposit and interest after 5 years
Interest earned
Total interest
$1,122.23 After 5 years Monthly interest$19
per month
Annual interest
$224 per year ## How to use this calculator This calculator takes the initial deposit, term of the CD, and APY and calculates how much interest you will earn and your ending balance. The inputs to the calculator are: • Deposit amount: This is your starting balance or how much you want to invest in CDs. • CD term: Input the total number of months or years it will take for your CD to mature. • APY: The APY is the annual percentage yield, which is also the published interest rate for a CD. When you are considering a CD, the seller will generally show you what the APY is for each CD. Make sure to use the APY since this takes into account interest rate compounding. ## Understanding your calculated results • Total balance: This is how much you will have once your CD matures. The total balance includes your deposit amount and all the interest you earned. • Interest earned: The total interest earned is the sum of all the interest paid out by the CD. We also show you how much this would be on a monthly and annual basis to help you better understand how much you are earning. ## What is a CD? A Certificate of Deposit (CD) is a type of bond issued by a bank that generally offers a higher interest rate than a regular savings account. A CD will pay a fixed interest rate for a fixed period of time, such as 3 months or 5 years. If you need your cash earlier than the maturity date, you may face a withdrawal penalty or you might need to sell your CD at a discount and lose some of your original deposit. ## CDs at a glance Type of investment CDs are a type of bond, issued by a bank. Interest rate CDs have a fixed interest rate. This interest rate will not change over the life of the CD. What you sign up for is what you get. Interest rates generally are higher for longer term CDs. This means a CD that matures in two years will have a higher interest rate than one that matures in one month. Maturity CDs range in maturity from one month, to a few months, to several years. Access to your money Until the CD matures, you do not have access to your money. If you want access to your money, you may need to pay an early withdrawal penalty fee. In some cases, you do not need to pay a fee, and can sell the CD, but this may be at a discount and you could lost some of your original deposit, netting you a loss. Minimum deposit The typical minimum deposit for a CD is$1,000.

Insurance

### Drawbacks

• Access to your money: One of the most common risks with investing in a CD is that you need your money before the CD matures.
• Risk bond issuer defaults: There is a risk that the issuer of the bond will default and not pay back the principal at maturity. It is important to know which bank you are buying your CD from and to choose reputable banks, particularly if you will be purchasing CDs that exceed the FDIC insurance limit.