Certificate of Deposit (CD) Calculator
Calculate guaranteed fixed CD maturity returns across 6, 12, 24, and 60-month terms and evaluate early withdrawal penalty scenarios.
CD Maturity & Early Withdrawal Penalty Formulas
Maturity Value = Principal × (1 + APY / 365)^Days | Penalty = Monthly Interest × Penalty Months | Net Value = Maturity Value − Penalty- Fixed APY: Guaranteed locked interest rate that cannot decrease during the CD term.
- Daily Compounding: Standard banking convention for certificates of deposit.
- Early Penalty: If cashed out before maturity, banks forfeit a set number of months of interest (typically 3 months for short CDs, 6 months for 2+ year CDs).
Step-by-Step Worked Example
Calculation Steps:
How to Use This Calculator
Assumptions & Limitations
- Assumes full principal is deposited at inception with no interim additions, as required by standard CDs.
Frequently Asked Questions
When should I choose a CD over an HYSA?
Choose a CD when you want to lock in a guaranteed interest rate before market interest rates drop, and when you are certain you will not need to access the money before the term expires.
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