CD (Certificate of Deposit) Calculator
CD (Certificate of Deposit) is evaluated from Deposit Amount, Annual Interest Rate and CD Term. The calculation reports Interest Earned, Total Value at Maturity and APY.
Results
About the CD (Certificate of Deposit) Calculator
The calculator uses a multi formula configuration. Each reported value is read as a direct evaluation of the stored rules with the declared field formats and units.
Formula basis:
A = P x (1 + r/n)^(n x t)
- A = total value at maturity
- P = principal
- r = annual rate (decimal)
- n = compounding periods per year (365 daily, 12 monthly, etc.)
- t = term in years
Interest Earned = A - P
APY = (1 + r/n)^n - 1
Interpret the outputs in the order shown by the result fields. Optional inputs affect only the outputs that depend on those variables.
Formula & How It Works
The calculation applies the following relations exactly as recorded in the metadata: A = P x (1 + r/n)^(n x t) - A = total value at maturity - P = principal - r = annual rate (decimal) - n = compounding periods per year (365 daily, 12 monthly, etc.) - t = term in years Interest Earned = A - P APY = (1 + r/n)^n - 1 Each output field is produced by substituting the supplied inputs into the relevant relation and then applying the declared rounding or text format.
Worked Examples
Example 1: 1-Year CD — Online Bank
Inputs
With Deposit Amount = 25,000, Annual Interest Rate = 5.15, CD Term = 12 and Compounding Frequency = 365 as the stated inputs, the result is Interest Earned = $1,321.13, Total Value at Maturity = $26,321.13 and APY = 5.2845%. Each value corresponds to the declared output fields.
Example 2: 6-Month Short-Term CD
Inputs
With Deposit Amount = 50,000, Annual Interest Rate = 5.3, CD Term = 6 and Compounding Frequency = 12 as the stated inputs, the result is Interest Earned = $1,339.72, Total Value at Maturity = $51,339.72 and APY = 5.4307%. Each value corresponds to the declared output fields.
Example 3: 5-Year Jumbo CD
Inputs
With Deposit Amount = 100,000, Annual Interest Rate = 4.75, CD Term = 60 and Compounding Frequency = 12 as the stated inputs, the result is Interest Earned = $26,748.06, Total Value at Maturity = $126,748.06 and APY = 4.8548%. Each value corresponds to the declared output fields.
Example 4: CD Ladder — 12-Month Rung
Inputs
With Deposit Amount = 10,000, Annual Interest Rate = 5, CD Term = 12 and Compounding Frequency = 12 as the stated inputs, the result is Interest Earned = $511.62, Total Value at Maturity = $10,511.62 and APY = 5.1162%. Each value corresponds to the declared output fields.
Common Use Cases
- Calculate how much a CD will earn at maturity
- Compare CD options from different banks on APY
- Find the best CD term for your savings goal