What is CD Calculator?
Forecasts guaranteed yield on FDIC-insured Certificates of Deposit with locked maturity dates.
How to Use This Calculator
- Enter CD deposit amount.
- Enter interest rate.
- Select term length.
- View maturity value and early withdrawal impact.
The Mathematical Formula & Variables
A = P * (1 + r / n)^(n * t)
Step-by-Step Worked Example
Scenario: $10,000 in 24-month CD at 5.0% compounded daily.
- APY = (1 + 0.05/365)^365 - 1 = 5.127%.
- After 2 years: $10,000 * (1 + 0.05/365)^(730) = $11,051.63.
- Interest earned = $1,051.63.
Result: $11,051.63
Frequently Asked Questions
What is a CD ladder?
A strategy where you divide investment across CDs with staggered maturity dates (e.g. 1, 2, 3, 4, 5 years) to maintain liquidity while earning higher rates.