CD Calculator
It's the rate of return on your money, or how much money your money earns over time.
CD Calculator – Estimate Your Certificate of Deposit Earnings
A Certificate of Deposit (CD) is one of the safest ways to steadily grow your savings over a specified time. CDs are a sound option to earn secured returns with low risk, whether you need it for short-term expenses or if you want a place to lock away some amount of money for the future. But how much can you expect to earn?
Use our CD Calculator to get an estimate of how much you’d expect to earn when it matures, assuming you deposited an amount of money and the CD has a term plus an Annual Percentage Yield (APY) with your bank or credit union. Using this calculator allows you to easily and quickly determine how much interest you can expect your money to earn – allowing you to make the best financial decision.
How to Use the CD Calculator?
Learning how to use our CD Calculator is easy. Simply fill in the three entry boxes, and you will know how your savings will have grown at the end of the term. It only takes a few seconds and leaves you with a clear picture of your potential investment growth.
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Initial Deposit
It is how much you plan to invest in the Certificate of Deposit to start. It doesn’t matter if you choose a 500, 5X, four or a 50,000 dollars; the calculator uses it in its calculations as a point from which to use your money.
Example: Let’s say you start a CD with 10,000 dollars, that 10,000 dollars is your principal.
Over a Period of
Choose the period you intend to keep your money in the CD. The standard length of CDs is 6 months to 5 years or more. The higher the term, the more interest you may tend to earn – mainly when the interest is compounded.
An example: By selecting a 24-month CD, you will get to watch your money increase over two years at the APY that is locked in.
APY (Annual Percentage Yield)
Enter in the APY that is offered by your bank or financial institution. The APY takes into account the compound interest, and it is the real annual rate of your deposit. The calculator then uses this figure to calculate your end-term balance.
If an example is 4.50% APY, then your money will be earning 4.5 per cent interest per annum, compounded in terms of your choosing.
Why Use a CD Calculator?
Whether you’re researching stock market investments or fixed-term investments, it’s important to know how much you stand to earn before you decide to invest in a fixed term account and, more importantly, if the earnings would warrant investing or not for your needs. A CD Calculator allows you to do the following:
- Calculate how much interest you will receive over a fixed term
- Compare the length of terms and APYs and then lock your money in
- Understand how compounding interest will affect your saving
- Plan for your financial future with more certainty
Whatever it is that you save up for, be it a car, a home down payment, or even just a secure amount of your savings that you can rely on, this tool is useful in making informed decisions.
After having keyed in your starting deposit, picked your term and entered your APY all you need to do is push your “Calculate” button, and out will appear your numbers. You will receive the percentage when the investment matures, the total amount of interest accrued and a clear image of your investment development.