If you’re on the fence about whether to commit your money to a CD at all, calculating your interest earnings could make it easier to decide if it’s worth it. This tool can be helpful for comparing CD accounts to other savings vehicles, such as high-yield savings accounts or money market accounts, or to other CDs. Using a CD calculator, you can find out exactly how much interest your savings could earn if you were to put it in a CD. As a final note, the calculator limits the CD maturity term to 10 years. It won’t work for calculating interest earnings with an add-on CD, which allows you to add money to your principal balance each month, or a bump-rate CD, which allows you to increase your rate during the term. This calculator is best suited for standard CDs that earn fixed interest on one deposit. The longer the CD term, the more time interest has to compound and the more your savings will grow. Remember that CDs earn compound interest or interest on interest. This tracks your cumulative interest month by month and ongoing earnings. The results reflect the total interest earned and the final value of your CD account at the end of the term.įor a detailed breakdown of interest earnings over time, use the “Show Schedule” function of the calculator. Our CD calculator helps you find out how much interest you’ll earn on a CD. Keep the link to this calculator handy when shopping around for the best CD rates, so you can figure out which CD will offer the best return on your investment. Select “Show Schedule” at the bottom of the calculator to see how your CD would earn interest month by month or year by year, depending on whether you selected a term expressed in months or years. Use the calculator and you’ll learn that once the CD’s 12-month term is up, you’d have $125 in interest and a total of $5,125 in your account.

You spot a one-year CD with an interest rate of 2.50%-far above the national average reported by the FDIC. Put into practice, let’s say you plan to buy a 12-month CD and deposit $5,000. Interest rate: the annual percentage yield ( APY) you’ll be paidĮnter those values, then select “Calculate.” You’ll see the amount of interest you’d earn over the CD’s term and the final value of your investment.Term: the length of time, in months or years, that you’ll need to keep your money in the CD.Initial deposit: the amount of money you plan to deposit.To get the most value from our CD calculator, start by gathering the three numbers you’ll need to input:

Bank cd interest rate