🏦 CD Calculator
Find out how much a certificate of deposit will earn by maturity and convert between APY and APR. It works the same way for Canadian GICs, UK fixed-rate bonds and fixed deposits in the GCC.
Quick answer: A $10,000 CD at 4.25% APY for 12 months earns $425.00, for a maturity balance of $10,425.00 – equivalent to a 4.162% APR compounded daily.
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CD Calculator inputs
Result
Balance at maturity
$10,425.00
$10,000.00 for 1 year at 4.25% APY
| Deposit | $10,000.00 |
| Interest earned | $425.00 |
| Balance at maturity | $10,425.00 |
- APY (annual percentage yield)
- 4.25%
- APR (nominal rate)
- 4.162%
- Average interest per month
- $35.42
Earnings by term at 4.25% APY
| Term | Interest earned | Balance |
|---|---|---|
| 3 months | $104.60 | $10,104.60 |
| 6 months | $210.29 | $10,210.29 |
| 9 months | $317.09 | $10,317.09 |
| 1 year | $425.00 | $10,425.00 |
| 1 year 6 months | $644.23 | $10,644.23 |
| 2 years | $868.06 | $10,868.06 |
| 3 years | $1,329.96 | $11,329.96 |
| 4 years | $1,811.48 | $11,811.48 |
| 5 years | $2,313.47 | $12,313.47 |
Assumes interest stays in the account until maturity and no early withdrawal penalty or tax is deducted.
How to use the CD calculator
Enter the deposit, the rate and whether it is quoted as an APY or an APR, the term in months and how often interest compounds. The calculator shows the maturity balance, the interest earned and the equivalent APY and APR, plus what the same rate earns over other common terms.
The CD formula
Balance = Deposit × (1 + APY)months ÷ 12 · APY = (1 + APR ÷ n)n − 1
n is the number of compounding periods a year (365 for daily). Working backwards, APR = n × ((1 + APY)1/n − 1). Because the APY already includes compounding, comparing APYs is the fairest way to compare offers from different banks, whatever compounding they use.
Worked example
You deposit $10,000 in a 12-month CD at 4.25% APY. After one year the balance is $10,000 × 1.0425 = $10,425.00, so you earn $425.00. With daily compounding the bank's nominal rate is 4.162% APR.
$10,000 at 4.25% APY by term
| Term | Interest earned |
|---|---|
| 6 months | $210.29 |
| 12 months | $425.00 |
| 24 months | $868.06 |
| 60 months | $2,313.47 |
CDs, GICs and fixed deposits
- US: certificates of deposit, FDIC- or NCUA-insured up to $250,000.
- Canada: guaranteed investment certificates (GICs), CDIC-insured up to C$100,000 per category.
- UK/EU: fixed-rate bonds quoted as AER.
- GCC: fixed or term deposits, including Islamic deposits with an expected profit rate.
Estimates for educational purposes, not financial advice.
Frequently asked questions
How is CD interest calculated?
Balance = deposit × (1 + APY)^(months ÷ 12). APY already includes compounding, so a 12-month CD earns exactly the APY. If your bank quotes an APR, first convert: APY = (1 + APR ÷ n)^n − 1.
What is the difference between APY and APR on a CD?
APR is the nominal yearly rate; APY (called AER in the UK) is what you actually earn in a year once compounding is included. With daily compounding, a 4.162% APR equals a 4.25% APY.
Does this work for GICs and fixed deposits?
Yes. Canadian GICs, UK fixed-rate savings bonds and term or fixed deposits in the UAE, Saudi Arabia and elsewhere follow the same maths – enter the quoted rate and the term in months. Islamic term deposits pay an expected profit rate that you can enter the same way.
What happens if I withdraw early?
Most CDs charge an early withdrawal penalty, commonly several months of interest. Some GICs are non-redeemable until maturity. Check the terms before you lock money away.
Is CD interest taxable?
In the US, CD interest is taxable in the year it is credited, even before maturity. Canadians can hold GICs in a TFSA or RRSP, and UK savers have a Personal Savings Allowance. This calculator shows pre-tax earnings.