CD Rate Calculator

Calculate how much a certificate of deposit (CD) will earn at maturity, including total interest and effective annual yield.

Maintained by Archie Chang · Data and formulas checked July 14, 2026 · Methodology & sources

Not financial advice. This calculator provides estimates for informational and educational purposes only. Results are not a loan offer or a guarantee of terms. Always confirm figures with a qualified lender or financial advisor before making decisions.

CD Details

$
%

Use the advertised APY, not a nominal interest rate. APY already includes the bank's compounding frequency.

Maturity Value

$10,155.00

Deposit (Principal)$10,000
Total Interest Earned$155.00
APY Used1.55%
Total at Maturity$10,155

FDIC National Deposit Rates

1-Year CD1.55%
5-Year CD1.34%

As of May 18, 2026. These are national rates, not top-yield offers. View the FDIC table.

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Frequently Asked Questions About CD Rates

How do I calculate CD interest?

Enter your deposit amount (principal), the APY quoted by the bank, and the term length. Because APY already includes compounding, the calculator applies A = P(1 + APY)^t, where P is the principal and t is the term in years. The result is the estimated maturity value if the CD is held for the full term.

What is the difference between APY and interest rate on a CD?

The interest rate is the nominal annual rate before compounding is applied. APY (Annual Percentage Yield) already factors in how often interest compounds, so it reflects what you actually earn in a year. Banks are required to advertise APY for CDs, which is why this calculator asks for APY directly rather than a separate nominal rate.

Why does this calculator not ask for compounding frequency?

APY is an effective annual yield: the bank has already included its compounding schedule in that number. Applying daily or monthly compounding to an APY again would count compounding twice and overstate the return. Compounding frequency is only needed when starting from a nominal interest rate rather than an advertised APY.

What happens if I withdraw from a CD early?

Most CDs charge an early withdrawal penalty, commonly a forfeiture of a set number of months of interest (for example, 3 months of interest on a 1-year CD, or 6-12 months on longer terms). This calculator shows the interest you would earn if you hold the CD to maturity; it does not model early withdrawal penalties, since those vary significantly by bank and CD term.

Is CD interest taxable?

Yes. Interest earned on a CD held outside a tax-advantaged account (like an IRA) is taxable as ordinary income in the year it is earned or credited, even if you do not withdraw it, and the bank will issue a Form 1099-INT once interest for the year exceeds $10. This calculator shows pre-tax interest; consult a tax professional for how it affects your specific return.

How much will a $10,000 CD earn in a year?

It depends on the APY offered. At the FDIC's May 18, 2026 national 12-month CD deposit rate of 1.55%, a $10,000 CD would earn about $155 over one year if held to maturity. This FDIC figure is a deposit-weighted national rate, not a claim about the best offer available. Enter the APY quoted by your institution for a relevant estimate.

Are CD rates tied to the Federal Reserve rate?

CD rates are not set directly by the Fed, but banks typically move CD APYs up or down in the same direction as the federal funds rate over time, since it affects banks' own cost of funds and what they are willing to pay to attract deposits. CD rates react more slowly and less precisely than fed-funds-linked products like savings accounts, and shorter-term CDs tend to track short-term rate expectations more closely than long-term CDs. See our current Fed rate and next FOMC meeting pages to track the rate environment.

How It's Calculated

A bank's advertised APY already reflects compounding. The calculator therefore applies that effective annual yield once over the selected term:

A = P · (1 + APY)t

Where each term means:

  • A — the maturity value: your deposit plus all interest earned by the end of the term.
  • P — the principal: the amount you deposit into the CD.
  • APY — the quoted Annual Percentage Yield as a decimal. A 4.5% APY becomes 0.045.
  • t — the term length in years. An 18-month CD is t = 1.5.

A worked example

Suppose you deposit $10,000 into a 1-year CD at 5% APY:

  • P = 10,000
  • APY = 5% = 0.05
  • t = 1 year

Plugging these into the formula gives A = 10,000 · (1 + 0.05)1 = $10,500. That is $500 in total interest over the year. The APY already accounts for the institution's compounding method.

Note: this calculation assumes the CD is held to maturity. It does not include early withdrawal penalties or taxes on interest earned. Actual APYs vary by bank, term, and deposit amount.

Authoritative sources: FDIC national CD rates · CFPB APY calculation rules · IRS interest income guidance