Leverage our CD calculator to ensure accuracy when making CD investments. Just process the required data and buckle up to make informed decisions about your CDs.

Lorem ipsum dolor sit amet consectetur adipisicing elit.

Result

End balance | Total interest |
---|---|

* interest rate of % compound is equivalent to annual rate of %

Inital Deposit

Total Interest

Inital Deposit

Total Interest

Deposit | Interest | Ending Balance |
---|

CD is an acronym for Certificate of Deposit. It is a type of financial investment that pays a set interest rate on the deposited money for a predetermined amount of time. Banks and credit unions typically provide CDs. Therefore, investing in CDs ensures a return upon maturity

Generally, the future value of CD is computed according to the following equation:

Future Value of CD (FV) = D × (1 + rn)^{nt}

In the above formula, ‘D’ represents the ‘amount of initial deposit,’ ‘r’ is the ‘decimal form of nominal interest rate,’ ‘n’ denotes the ‘number of times interest is compounded per year’ and ‘t’ refers to the ‘time the CD is held in years.’

However, the future value of CD has a strong relationship with Annual Percentage Yield (APY). Therefore, calculating the APY becomes essential when FV is computed. Here is the formula used to calculate APY:

Annual Percentage Yield (APY) = (1 + rn)^{n} - 1

To better comprehend the computation of CD, let’s consider the example of Chandler who invests $5,000 in a one-year Certificate of Deposit (CD) with an annual interest rate of 5.6% compounded daily. Determine the final value of Chandler’s CD when it matures.

Initial deposit amount (D) = $5000

Nominal interest rate (r) = 5.6%

Since it is essential to consider the nominal interest rate in decimal form, 5.6% will become 0.056.

Number of times interest is compounded per year (n) =365

Investment time period (t) = 1 year

By substituting all the values in the ‘Future Value of CD’ formula, the equation will become of

Future Value of CD (FV) = 5000 ×(1 +
$\frac{0.0056}{365}$)^{(365)(1)}

FV=5000 × (1.00015342465)^{(365)}

FV=5000 × 1.057593138

FV=5,287.96569

Hence, upon maturing, the future value of Chandler’s CD will be $5,287.96569.

In addition to traditional CDs, Certificates of Deposit are available in different types to accommodate a variety of investment needs and risk tolerance levels. These are the most common kinds of CDs:

This type allows CD investors to claim a greater interest rate only if rates rise while the Certificate of Deposit’s period is in effect.

A callable CD is a Certificate of Deposit form that can be redeemed by the issuing credit union or bank. Its early redemption characteristic can ultimately impact the investor’s returns.

A type of CD that offers greater interest rates in return for longer term or bigger deposits is known as high-yield Certificate of Deposit.

This Certificate of Deposit form typically provides higher interest rates at the expense of a hefty initial deposit amount.

Predicting the growth of CD investment requires understanding its formula and factoring in variables, like compound frequency and interest rate. But you don’t have to get entangled in these complexities. Rather, you can simply enter the required data into our CD calculator and the tool will automatically take care of the rest. Here’s how to use our CD interest calculator to compute certificates of deposit:

Select a compounding frequency value from the drop-down list.

Tap the ‘Calculate’ button to get precise growth estimates for your CD.

Our CD rate calculator is a user-friendly tool that makes it simpler to compute the final value of Certificates of Deposit. Refer to the following features to discover the complete potential of our tool:

Our certificate of deposit calculator allows entering adjustable parameters. Therefore, users can enter values according to their use cases and get tailor-made results.

This CD calculator also considers the marginal tax ratio to compute the certificate of deposit. Therefore, users can receive more precise projections of their CD investments.

Our CD return calculator uses graphs to provide complete details about certificate of deposit computations. Hence, users can gain more insightful information and make better decisions.

The interface and overall experience of this CD investment calculator will be responsive on all platforms and devices. Therefore, users of any device and operating system can enjoy the benefits of this online tool.

Our CD calculator boasts an easy-to-use interface. Therefore, users can effortlessly navigate all the options of our tool and obtain precise results about their CD’s growth potential.

- Bonds.
- Bundled mortgages.
- Money market accounts.
- Peer-to-peer lending.