Financial Calculators
CD Calculator
Calculate CD earnings based on principal, APY, and term.
What is the CD Calculator & How does it work?
A Certificate of Deposit (CD) is a financial product offered by banks that provides a fixed interest rate over a specific period. The Principal is the initial amount invested, while the Annual Percentage Yield (APY) represents the total return on investment including compound interest. The term is the duration for which the money is invested.
The formula to calculate the final balance of a CD with compound interest is: A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest. P is the principal amount (the initial amount of money). r is the annual interest rate (decimal), n is the number of times that interest is compounded per year, and t is the time the money is invested for in years.
$$A = P\left(1 + \frac{r}{n}\right)^{nt}$$
A = Final balance
P = Principal amount
r = Annual interest rate (decimal)
n = Number of compounding periods per year
t = Time in years
P = Principal amount
r = Annual interest rate (decimal)
n = Number of compounding periods per year
t = Time in years
Parameters
$
%
years
Interest Earned
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Final Balance
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Results are for informational purposes only and do not constitute professional advice.