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CD Calculator

Find out how much a certificate of deposit will be worth when it matures, how much interest it earns, and how much of that you keep after income tax.

The annual percentage yield quoted by the bank.
CD interest is taxed as ordinary income each year.

$10,400.00Value at maturity after 12 months

Interest earned$400.00
Tax on the interest$88.00
Interest after tax$312.00

APY already includes compounding, so the calculation uses it directly. Withdrawing early usually costs a penalty of several months’ interest.

How this calculator works

Banks quote CDs by APY (annual percentage yield), which already includes compounding. The value at maturity is deposit × (1 + APY)^(months ÷ 12).

Interest on a CD is taxed as ordinary income, usually in the year it is credited, even if you don’t withdraw it.

Withdrawing before maturity normally costs a penalty, often several months of interest.

CDs at FDIC-insured banks or NCUA-insured credit unions are protected up to $250,000 per depositor, per institution, per ownership category.

Worked example

$10,000 in a 12-month CD at 4% APY

  1. Value at maturity: $10,400.
  2. Interest: $400.
  3. At a 22% tax rate, you keep $312 after tax.

Questions people ask

What is a CD ladder?

Splitting money across CDs with different maturities, such as 1 to 5 years, so some matures every year while longer CDs earn higher rates.

CD or high-yield savings account?

A CD locks in a rate for the term; a savings account rate can change at any time but lets you withdraw freely.

What is the difference between APY and APR?

APY includes compounding; APR doesn’t. For savings, compare APYs.

What happens when a CD matures?

Most banks give a grace period, often 7 to 10 days, to withdraw or change terms before it renews automatically.

Last reviewed October 2, 2026