CD Calculator: Certificate of Deposit Maturity Value
Work out what a certificate of deposit is worth at maturity, and how much of that figure is interest the bank has paid.
Adjust the inputs and select Calculate for a full breakdown.
Year-by-year growth schedule
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Future value | Total contributions | Total interest earned |
|---|---|---|---|
| $10k · 4.5% · 5yr | $12,517.96 | $10,000.00 | $2,517.96 |
| $5k · 4.0% · 2yr | $5,415.71 | $5,000.00 | $415.71 |
| $25k · 5.0% · 3yr | $29,036.81 | $25,000.00 | $4,036.81 |
| $50k · 3.5% · 1yr | $51,778.35 | $50,000.00 | $1,778.35 |
How This Calculator Works
Enter the deposit, the CD's annual percentage yield, and the term. The calculator compounds the balance monthly at the fixed rate until the term ends, then reports the maturity value and the interest earned. A CD locks the rate for the full term, so the result is known in advance.
The Formula
Future Value with Regular Contributions
P = starting amount, PMT = monthly contribution, r = monthly rate (annual ÷ 12), n = number of months
Worked Example
A $10,000 deposit in a 5-year CD at a 4.5% APY grows to about $12,518 at maturity. Of that, roughly $2,518 is interest — a return fixed on the day the CD is opened, regardless of what rates do later.
Key Insight
A CD trades access for certainty: the rate is locked, but withdrawing early usually forfeits several months of interest. Match the term to when you will genuinely need the money, not to the highest rate on offer.
CD ladder strategy — capture rates without locking in
CD ladder splits funds across multiple CDs with staggered maturities. Example: $50K split into 5 CDs at $10K each in 1, 2, 3, 4, 5-year terms. Each year, one CD matures and rolls into new 5-year CD. After 5 years, all CDs are 5-year terms with one maturing annually.
Benefits: (1) RATE EXPOSURE — captures rising rates as maturing CDs reinvest at current rates; (2) LIQUIDITY — annual maturity provides regular access to portion of funds; (3) BLENDED YIELD — laddered approach typically yields more than rolling 1-year CDs alone over multiple years; (4) REDUCED REGRET — diversifies timing risk vs single lump-sum CD.
When ladder makes sense: substantial savings (>$25K) intended for medium-term need (5-10 years); intolerance for interest rate uncertainty; preference for predictable returns over uncertain equity returns. For longer horizons, diversified equity portfolio typically outperforms CD ladder by substantial margin.
CD vs high-yield savings — when each wins
High-yield savings accounts (HYSA): variable rate, immediate access. Top HYSA rates 2024: ~4.5-5.0% APY. Rate can change daily. CDs: fixed rate, locked term. Top 1-year CD rates 2024: ~5.0-5.5% APY. Rate locked for entire term.
When HYSA wins: short-term goals with uncertain timing (emergency fund, near-term major purchase); rates are rising (CD locks in current rate while HYSA captures increases); preference for liquidity over yield premium.
When CD wins: known timing of need (knew exactly when funds needed); rates are falling (CD locks in current rate while HYSA decreases); want yield certainty over flexibility. 2024 environment: rates near peak, declining outlook — favors CDs to lock in current high rates. 2020 environment: rates near floor, rising outlook — favored HYSA to capture rises. Always check current rate environment and outlook.
U.S. CD vs HYSA rates and break-even analysis (2024)
Reference rates for U.S. CDs vs HYSA and break-even on early CD withdrawal.
| Product | Typical APY | Liquidity | Notes |
|---|---|---|---|
| 1-year CD (top yield) | 4.5-5.5% | Locked | Early withdrawal penalty 3-6 mo |
| 3-year CD (top yield) | 4.0-4.8% | Locked | |
| 5-year CD (top yield) | 4.0-4.7% | Locked | |
| Brokered CD (through broker) | 4.5-5.3% | Tradable but with bid-ask spread | FDIC insured |
| High-yield savings (top) | 4.5-5.0% | Daily access | Rate floats |
| Money market account | 4.0-4.7% | Daily access | Some check writing |
| Treasury 1-year bill | ~4.5% | Marketable | State tax exempt |
| Treasury 5-year note | ~4.2% | Marketable | State tax exempt |
Treasury securities are state-tax-exempt (unlike CDs) which can boost effective yield meaningfully in high-state-tax jurisdictions (CA, NY, NJ). For tax purposes, compare Treasury yields against CDs' tax-equivalent yield in your state. Brokered CDs (through Fidelity, Schwab, Vanguard) typically offer same/better rates than direct bank CDs with greater convenience for managing larger portfolios.
Frequently Asked Questions
What is a certificate of deposit?
A CD is a time deposit that pays a fixed rate in exchange for leaving the money untouched for a set term. It is FDIC-insured at member banks up to the standard limit.
What happens if I withdraw early?
Most CDs charge an early-withdrawal penalty, often several months of interest. The calculator assumes the CD is held to maturity, so an early exit would return less.
Is a CD rate fixed?
Yes. Unlike a savings account, a CD locks its rate for the whole term. That protects you if rates fall but leaves you behind if rates rise.
What is a CD ladder?
A ladder splits money across CDs of staggered terms, so one matures regularly. It blends access to cash with the higher rates that longer terms tend to offer.
Is CD interest taxable?
Yes. CD interest is generally taxed as ordinary income in the year it is credited, even if the CD has not yet matured. The calculator shows pre-tax figures.
When is this calculator unreliable?
When CD has early withdrawal penalty (typically 3-6 months of interest if broken early), when rate is variable (rare in fixed-rate CDs but some 'bump-up' or 'step-up' CDs have variable structures), or for callable CDs where bank can redeem early if rates fall. Always verify the specific CD's terms before relying on future value projections.
References & Authoritative Sources
- Federal Deposit Insurance Corporation (FDIC) — CD Insurance and Rates Data · consulted June 1, 2026 · Federal regulator data on insured deposit products
- Consumer Financial Protection Bureau (CFPB) — Certificates of Deposit Consumer Guide · consulted June 1, 2026 · Federal consumer guidance on CDs
- U.S. Federal Reserve Economic Data (FRED) — National Average Deposit Rates · consulted June 1, 2026 · Official U.S. deposit rate data
Related Calculators
Data Sources & Benchmarks
This calculator draws on 3 independent, dated sources. The starting values for cd rate (apy) are taken from the benchmarks below and refresh whenever the snapshots are updated.
Methodology & Review
Certificate of Deposit (CD) future value uses compound interest formula: FV = PV × (1 + r/n)^(n×t), where PV is initial deposit, r is APY (annual percentage yield), n is compounding frequency, t is years. The calculator returns CD value at maturity. U.S. CD rates 2024: 1-year terms typically 4.5-5.5% APY at top-yielding institutions (Ally, Marcus, online banks); 5-year terms 4.0-4.7%; 'jumbo' CDs ($100K+) often 0.05-0.20% higher. CDs are FDIC-insured up to $250,000 per depositor per bank. RELIABILITY: Reliable for documented APY and term. Less reliable when (a) interest rates change during CD term — your CD locks the rate, but if rates rise, you may want to break early (typically forfeits 3-6 months interest); (b) inflation reduces real return — at 3% inflation, 5% CD yields only 2% real return; (c) callable CDs allow bank to redeem early if rates fall (returns capital but eliminates expected interest).
Updated