CD Earnings Calculator — How Much Will Your CD Earn?
Enter your deposit, APY, and term to see exact interest at maturity, monthly earnings, and how much more you earn versus the national average savings rate.
How to use this CD calculator
Enter four values: the deposit amount, the APY shown on the bank’s rate page, the term in months, and the compounding frequency. Most CDs compound daily, which produces slightly more interest than monthly compounding at the same stated APY.
The result shows total interest earned at maturity, your average monthly earnings, and a comparison to the FDIC national average savings rate. The “vs. national average” line shows how much additional interest you earn by choosing a competitive CD over a typical bank savings account.
CD earnings at current top rates —
As of , the best 12-month CD rate is at . Here is what a $10,000 deposit earns at various current rates and terms:
| Deposit | APY | Term | Interest earned | Total at maturity |
|---|---|---|---|---|
| $10,000 | — | 12 months | — | — |
| $10,000 | — | 9 months | — | — |
| $10,000 | — | 11 months (no-penalty) | — | — |
| $10,000 | — | 6 months | — | — |
| $10,000 | 0.42% | 12 months (national avg) | $42 | $10,042 |
All figures use daily compounding. Rates as of — verify at the institution before opening. See live rankings for all terms →
How CD interest is calculated
CD interest uses the compound interest formula: A = P(1 + r/n)^(n×t), where P is the principal, r is the annual interest rate as a decimal, n is the number of compounding periods per year, and t is the term in years. The interest earned is A minus P.
APY (Annual Percentage Yield) already accounts for compounding, so when a bank advertises 4.30% APY, that is the effective annual return including compounding. Enter the APY shown on the bank’s rate page directly into this calculator — do not enter the nominal rate.
Daily vs. monthly compounding
Daily compounding produces slightly more interest than monthly compounding at the same stated APY. On a $10,000 deposit at 4.30% APY for 12 months, the difference between daily and monthly compounding is approximately $0.50 — essentially negligible. What matters far more is the APY itself.
CD vs. HYSA: which earns more?
At current rates, the best 12-month CD rates are competitive with the best HYSA rates. The CD wins if you are certain you will not need the money for the full term and want rate certainty against potential Fed rate cuts. The HYSA wins if you might need access or if you expect rates to rise.
A no-penalty CD is a middle ground — a locked rate with the option to exit early without penalty after a 6-day holding period. Use the CD vs. HYSA calculator to model your specific balance and timeline.
Early withdrawal: what does it actually cost?
Most CDs charge an early withdrawal penalty ranging from 60 to 180 days of interest. On a $10,000 CD at 4.30% APY, a 90-day penalty costs approximately $107. Breaking the CD is usually still profitable compared to leaving money in a low-rate account, especially if you have held the CD for more than half its term. Use the early withdrawal penalty calculator to model the exact break-even point for your situation.
Use the APY shown on the bank’s own rate page, not the nominal rate. APY already accounts for compounding so entering it directly gives the correct result. See the live 12-month CD rankings for current top rates, or click any rate in the reference box above to pre-fill the calculator.
CD interest uses compound interest: A = P(1 + r/n)^(nt), where P is principal, r is APY as a decimal, n is the compounding frequency (365 for daily, 12 for monthly), and t is the term in years. Daily compounding produces slightly more interest than monthly compounding at the same APY, but the difference on typical CD balances is under $1 per $10,000.
Yes. CD interest is taxed as ordinary income in the year it is credited to your account, including on multi-year CDs where interest accrues annually before maturity. Your bank will issue a 1099-INT each year. To compare after-tax returns across tax brackets, use the tax equivalent yield calculator.
The FDIC publishes the national average savings rate quarterly. As of , the national average for savings accounts is approximately 0.42% APY. The national average for 12-month CDs is approximately 1.80% APY. The best available rates are more than 9 times the national average for savings. See the national rate benchmark for historical comparison charts.
The top-ranked 12-month CD is at APY, updated daily. For a no-penalty option, see the no-penalty CD rankings. All rates verified daily — see the full live CD rankings for every term.
If you will not need the money for 6–12 months and want rate certainty, a CD is likely the better choice — especially if you expect interest rates to fall. If you might need the money sooner, a HYSA earns a competitive rate with no lock-in. A no-penalty CD is the best of both: CD rate lock with HYSA-like exit flexibility. Use the CD vs. HYSA calculator to compare for your specific situation.