Crunch CD Calculator
A CD quotes APY, and APY already includes compounding — which makes the maturity figure easy to check and easy to get wrong. Enter the deposit, APY and term and see the exact maturity value, the interest, and the balance at every year-end.
Year by year
| Year | Balance | Interest so far |
|---|---|---|
| Run the numbers to see the growth table. | ||
How it works
APY is the effective annual yield, so the maturity value is simply deposit × (1 + APY)years — the same at every compounding frequency, because APY already contains the compounding. The frequency still matters behind the scenes: from the APY this tool derives the nominal rate for that frequency (the rate the bank actually applies each period), which is how the year-by-year balances are built. Comparing two CDs? Compare APYs — the frequency is already inside them.
Formula & worked example
Formula: APY is the effective annual yield, so maturity value = deposit × (1 + APY)^years — identical at every compounding frequency, because APY already contains the compounding. Behind the scenes the nominal rate for a frequency f is derived as f × ((1 + APY)^(1/f) − 1) — at 5% APY compounded monthly, that nominal rate is 4.8889%.
Worked example: Deposit $10,000 at 5% APY for 3 years: year 1 ends at $10,500.00, year 2 at $11,025.00, and maturity pays $11,576.25 — $1,576.25 of interest, the same whether the bank compounds daily, monthly or annually.
Frequently asked questions
How much is a $10,000 CD at 5% APY worth in 3 years?
$11,576.25 — $1,576.25 of interest. Because APY already includes compounding, the figure is the same whether the bank compounds daily, monthly or annually.
What is the difference between APY and the interest rate?
The rate is what is applied each period; the APY is what you effectively earn over a year after compounding. A 4.89% nominal rate compounded monthly is a 5.00% APY. Banks must quote APY on deposit products precisely so this comparison is fair.
Does compounding frequency change what I earn?
At the same APY, no — that is the point of APY. At the same nominal rate, yes: more frequent compounding earns slightly more. Always compare CDs by APY and term together.
What happens if I withdraw early?
Typically a penalty of 3–12 months of interest, which can eat into principal on short terms. The maturity value here assumes you hold to term — which is the entire deal a CD offers: a higher yield in exchange for leaving the money alone.
📈 What does inflation do to that CD?
A 5% yield against 3% inflation is a 2% real return. The Inflation Calculator shows what your maturity value will actually buy.