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CD Interest Calculator

See exactly what a certificate of deposit pays by maturity — the interest, the ending balance, and how it stacks up against the national average.

Formula published below · rates as of August 7, 2026 · how we test it
$500 – $250,000
$
nat'l avg 1.68%
%
federal + state
%
CD interest counts as ordinary income and is taxed in the year it is credited.
Good to know
Compare offers on APY alone — a higher nominal rate can still deliver a lower yield.
Online banks routinely pay 2–3× the national average; the branch on your corner is seldom the best rate.
We assume interest stays inside the CD. Where you plan to withdraw it, switch to the monthly interest tool.
You'll earn
$440.00
in interest on $10,000 over 1 year
Maturity value
$10,440.00
Total yield
4.40%
Avg. per month
$36.67
After tax (24%)
$334.40
Balance growth
startmo 4mo 8mo 12
NEXT STEP · YOUR FIGURES CARRY OVERSee what you keep after tax
At the 1.68% FDIC national average for this term, the same deposit earns only $168.00 — a gap of $272.00 on identical money over an identical term.
Compare today’s top CD rates →

What this calculator actually computes

It grows your deposit by the annual percentage yield across the term, on the assumption that interest stays inside the certificate until maturity — the default setup for most CDs. On $10,000 at 4.40% for 12 months that comes to $440.00 of interest, a maturity value of $10,440, and roughly $36.67 a month on average. That averaging matters: because interest compounds, the later months earn slightly more than the earlier ones, so the monthly figure is a summary rather than a payment schedule.

The one thing it deliberately will not do is convert interest rates. Where your bank quoted you “4.50% compounded daily” instead of an APY, put it through the APY converter first — the difference on that quote is about $10 a year per $10,000, and confusing the two numbers is the single most common CD comparison mistake.

A realistic example: $25,000 for two years

Say $25,000 from a house sale is sitting there and you will not need it until late 2028. A top 24-month CD at 4.25% grows it to $27,170 — $2,170 of interest. The same money at the 1.56% national average for that term earns $786. Closing that $1,384 gap costs you one afternoon spent opening an account at a different bank, which works out to the best hourly rate most people will ever earn.

Two caveats before locking it. First, test the term against your real timeline: breaking that CD at month 8 would cost roughly six months of interest, around $525. Second, if the $25,000 pushes any one institution above $250,000 of your money, split it — insurance limits take no interest in how good the rate was.

Frequently asked

APY. Annual percentage yield already accounts for compounding, which makes it the number to compare across banks. A 4.50% rate compounded monthly works out at a 4.59% APY — the converter does that step for you.
Sources & further reading
FDIC — deposit insurance coverage limits: $250,000 per depositor, per insured bank, per ownership category.
NCUA — share insurance for credit union accounts, on the same $250,000 basis.
Regulation DD (Truth in Savings, 12 CFR 1030) — how annual percentage yield must be calculated and disclosed.
IRS Publication 550 — interest income is taxable in the year it is credited, reported on Form 1099-INT.
FDIC National Rates and Rate Caps, July 2026 monthly survey — the national-average CD yields used as benchmarks beside results.
Top-APY figures: institutions' published rate pages and dated August 2026 roundups (Bankrate, CNBC Select, Fortune/Curinos, The College Investor), checked August 7, 2026.

Keep going

You'll earn
$440.00