This simple CD interest calculator will estimate the amount of interest you’ll earn on a CD. It covers CD terms ranging from 3 months to five years.

How to Use the CD Interest Calculator

To calculate how much interest you’ll earn over the term of a CD, just enter the following information:

Initial Deposit: The amount you plan to invest in the certificate of deposit.

CD Term: The length of the CD, ranges from 3 months to five years.

APY: The Annual Percentage Yield. Note that this is different than the interest rate. The APY takes into account the compounding of interest. Banks disclose the APY so it should be easy to determine.

CD Rates

Rates on certificates of deposits can change daily. We maintain a list of the best CD rates, which we update monthly. In addition, you can see additional rates here (updated daily):

The FDIC publishes weekly data on deposit account rates, including certificates of deposit. According to recent data, the national average yield on a 1-year CD stood at a paltry 1.79%. The rates we track are substantially higher than this, largely because we focus on online banks.

How are CD rates calculated?

Banks determine the yield they will pay on a CD based, in part, on the term of the CD. Generally, CDs with longer terms pay higher interest rates than CDs with shorter terms. There are, however, exceptions to this rule from time to time.

What CD term should I choose?

The best CD term will depend in part on your saving goal. Keep in mind that most CDs charge a penalty if you take the money out before the end of the term. It’s therefore important to consider when you’ll need to use the money before locking it into a long-term CD.

How often does interest compound on a CD?

The compounding rate can vary from bank to bank and from one CD term to another. In our calculator, we compound interest annually. We chose annual compounding because we found that to be a common approach among many banks for CD products. Daily or monthly compounding would increase the interest you earn over the term of the CD.


  • Rob Berger

    Rob Berger is the founder of Dough Roller and the Dough Roller Money Podcast. A former securities law attorney and Forbes deputy editor, Rob is the author of the book Retire Before Mom and Dad. He educates independent investors on his YouTube channel and at

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