A certificate of deposit (CD) account can help you lock in a great rate on your savings. These accounts let you deposit money for a set period and earn interest during that time. At the end of the period, you can collect your original deposit, along with the interest that’s piled up.
But how much could your money grow? A CD calculator can help you find the answer.
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How a CD calculator works
Our CD calculator can help you figure out how much interest you could earn. Before you start using it, let’s define what you’ll need to enter.
- Initial deposit. This is the amount of money you plan to put into your CD. Most CDs only let you add money when you open the account, but some allow regular monthly deposits.
- Term. Your CD term is how long the bank expects you to keep your money in the account, measured in months or years.
- Interest rate. This is the rate the bank will pay you during the CD term.
- Compounding interval. Compounding happens when you earn interest on your interest. The faster the compounding rate, the faster your CD grows.
- Value at maturity. This is how much your CD is worth when the term ends.
A CD calculator uses the first four pieces of information—your opening deposit, term, interest rate, and compounding frequency—to calculate your CD’s value at maturity.
Now that you’ve got those terms down, you’re ready to use a CD calculator.
How to calculate your CD earnings
The great thing about a CD calculator is that you can customize it to fit the exact CD you want to open and the amount of money you can afford to deposit. Here’s how to use it to compare CDs, step by step.
- Enter your initial deposit. Use the slider to adjust the number from $0 to $100,000.
- Choose how to measure the CD term. Select months or years for your CD term.
- Pick a term length. Use the slider to set your CD term length from 1 to 12 months.
- Enter the interest rate. If you know the CD rate, enter it as a percentage.
- Choose a compounding interval. CD interest can compound daily, monthly, quarterly, semi-annually, or annually. Check the box that matches the CD you’re thinking of opening.
Once you’ve entered everything in, you’ll see your results. Here are some examples of what you could earn. We’ll assume you deposit $5,000 into your CD, with interest compounding daily.
| CD term | CD rate | Value at maturity |
| 1 month | 3.00% | $5,012.52 |
| 3 months | 3.50% | $5,040.79 |
| 6 months | 3.75% | $5,094.63 |
| 9 months | 4.00% | $5,152.26 |
| 12 months | 4.25% | $5,217.07 |
What is a good APY for a CD?
Annual percentage yield (APY) is the total amount of interest you’ll earn on a CD over a year, including the effects of compounding. It’s the best way to compare CD rates between banks because it shows your true annual return.
A good APY for a CD depends on the term length and what banks are paying on average. As of September 2025, the national average rate for a 12-month CD was 1.70%, so anything above that would be “good.” The best CD rates may be two to three times the average.
Longer terms can translate to a better CD rate, but not always. Banks can sometimes offer “special” CDs with shorter terms that offer the highest rates.
How to maximize CD savings
CDs can help you grow your money with minimal effort. Try these tips to make the most of them.
- Build a CD ladder. CD laddering means opening multiple CDs with different terms and rates. As CDs mature, you can decide whether to renew them or withdraw the money.
- Keep an eye on rates. CD rates are tied to changes in the federal funds rate; if the Federal Reserve raises this rate or cuts it, CD rates can rise or fall. Tracking rate trends can help you time when to open a CD.
- Try a no-penalty CD. Banks can charge penalties if you take money out of your CD before maturity. A no-penalty CD waives the fee for early withdrawals.
CDs vs. other savings accounts
CDs are one way to save and earn interest on your money. High-yield savings accounts (HYSA) are another.
High-yield savings accounts pay above-average rates and often charge lower fees than traditional savings accounts. And, your money isn’t locked in the way it is with a CD. If you’re considering a high-yield savings account, pay attention to:
- Rates
- Minimum deposit requirements
- Minimum balance requirements
- Fees
- Account access
Some of the best savings accounts come from online banks. If you’re interested in a savings account at a brick-and-mortar bank, be prepared for lower rates and potentially higher fees. Of course, you could get the best of both worlds with a Capital One 360 CD, which pays competitive rates and offers branch access.
Learn more about how CDs and savings accounts compare to decide which one is right for you.
Article sources
At LendEDU, our writers and editors rely on primary sources, such as government data and websites, industry reports and whitepapers, and interviews with experts and company representatives. We also reference reputable company websites and research from established publishers. This approach allows us to produce content that is accurate, unbiased, and supported by reliable evidence. Read more about our editorial standards.
About our contributors
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Rebecca Lake is a certified educator in personal finance (CEPF®) and freelance writer specializing in finance.
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Amanda Hankel is a managing editor at LendEDU. She has more than seven years of experience covering various finance-related topics and has worked for more than 15 years overall in writing, editing, and publishing.
