# Certificate of Deposit Calculator

You can use this Certificate of Deposit Calculator to figure out how much interest you will earn on a certificate of deposit (CD). It also creates a detailed printable schedule of your Certificate of Deposit's balance and interest earned.

The CD Calculator is simple to use. Just follow the five easy steps below:

- Enter the amount of the initial deposit
- Input the annual interest rate of the CD, expressed as percentage
- Select the frequency of compounding from the drop-down list
- Enter the length of the CD in months, and select the currency (optional)
- Click on the 'Calculate' button to see the results.

## Reference

The Certificate of Deposit Calculator uses the following formulae:

*
FV = D × (1 + r / n)
^{
nt
}
*

*
Where:
*

*
FV = Future Value of the CD,
*

*
D = Initial deposit amount,
*

*
r = Nominal annual interest rate in decimal form,
*

*
t = Number of years invested,
*

*
n = Number of compounding periods per year.
*

*
APY = (1 + r / n )
^{
n
}
- 1
*

*
Where:
*

*
APY = Annual Percentage Yield,
*

*
r = Annual (nominal) interest rate in decimal form,
*

*
n = Number of compounding periods per year.
*

**
Example:
**
Kevin deposits $3,000 in a 1-year certificate of deposit (CD) at 5.6% annual interest compounded daily. How much will his CD be worth at maturity?

**
Solution:
**
The nominal annual interest rate in decimal form is 5.6 / 100 = 0.056, using the formula above, we get:

FV = $3,000 × (1 + 0.056 / 365)
^{
365 × 1
}

FV = $3,000 × (1.00015342465)
^{
365
}

FV = $3,000 × 1.057593138 = $3,172.779

FV = $3,172.78, the future value of the CD is $3,172.78

You may also be interested in our free Money Market Account Calculator