Cd Calculator
Calculate the maturity value of a Certificate of Deposit (CD) based on initial deposit, interest rate, term, and compounding frequency.
Published by:
isCalculator Editorial Team
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How to use this tool?
How to Use the CD Calculator
- Enter Initial Deposit: Input the amount you plan to invest (e.g., $10,000). Must be a positive number.
- Enter Annual Interest Rate: Input the annual percentage rate (e.g., 5.0 for 5%). Must be a positive number.
- Enter Term: Input the CD duration in months (e.g., 12 for 1 year). Must be a positive integer.
- Select Compounding Frequency: Choose how often interest compounds (e.g., Monthly, Quarterly, Daily). Default is Monthly.
- Click "Calculate": Press the button to compute results.
Results Explained:
- Maturity Value: Total amount at the end of the term (initial deposit + interest).
- Total Interest Earned: Interest earned over the term.
- Formula Breakdown: Shows the calculation using the compound interest formula: A = P (1 + r/n)^(nt).
Note: All monetary values are in US dollars ($). Ensure inputs are positive and in the specified formats.
Previous Results
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Frequently Asked Questions
A Certificate of Deposit (CD) is a savings product offered by banks that pays a fixed interest rate for a fixed term.
The maturity value is calculated using the compound interest formula: A = P(1 + r/n)^(nt), where P is the initial deposit, r is the annual interest rate, n is the number of compounding periods per year, and t is the time in years.
We offer annual, semi-annual, quarterly, monthly, and daily compounding options.
