See how a certificate of deposit grows: future value, interest earned and effective annual yield for any rate and term.
value at maturity
How to use this tool
Type the lump sum you will put into the CD.
Use the advertised annual rate and the term in years — most CDs run from 3 months to 5 years.
Monthly is the most common; more frequent compounding earns slightly more.
Under Advanced options, add your tax rate to see what the interest is worth after tax.
Formula & worked example
A $10,000 CD at 5% compounded monthly for 5 years matures at $12,833.59 — $2,833.59 of interest, an effective yield of 5.116%. The same CD compounded annually matures at $12,762.82.
Limitations — read this before you rely on it
Banks quote APY and nominal rate differently, so compare APYs, not headline rates. Early-withdrawal penalties, minimum deposits and whether interest is paid out or reinvested all change the real return, and interest is usually taxable as income.
Frequently asked questions
A certificate of deposit: you lock money away for a fixed term in exchange for a guaranteed interest rate, usually higher than a savings account.
The effective annual yield after compounding. A 5% rate compounded monthly is a 5.116% APY; compounded annually it is exactly 5%.
A little: on $10,000 at 5% for 5 years, monthly compounding earns about $71 more than annual compounding.
Most CDs charge an early-withdrawal penalty, often several months of interest, which can wipe out the gain — only deposit money you will not need before maturity.
Yes, in most countries it counts as taxable income in the year it is earned. Enter your tax rate under Advanced options for the after-tax figure.