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.
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 1year 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
What is Certificate of Deposit
A Certificate of Deposit (CD) Calculator is a tool designed to help individuals estimate the potential earnings and growth of their investment in a certificate of deposit. A certificate of deposit is a time deposit offered by banks or financial institutions where individuals deposit a fixed sum for a specific period, generally ranging from a few months to several years, in exchange for a fixed interest rate.
Here's how a typical CD Calculator works:

Initial Deposit: You input the initial amount of money you plan to deposit into the certificate of deposit. This represents the principal amount.

Interest Rate: The calculator allows you to input the annual interest rate or the rate of return offered by the financial institution on the certificate of deposit. This is the percentage that determines how much interest your deposit will earn.

Term/Duration: You specify the period for which you plan to keep the money invested in the certificate of deposit. It could be a few months, one year, two years, or any other duration provided by the financial institution.

Calculation: Using the given inputs, the CD Calculator calculates the future value of your investment, taking into account the interest earned over the specified term.

Displaying the Result: The calculator presents the estimated maturity value of your certificate of deposit at the end of the specified term. It may also display the total interest earned during the investment period.
The CD Calculator helps investors compare different certificate of deposit options, evaluate potential returns, and make informed decisions about their investments. By adjusting the initial deposit, interest rate, and term, users can see how these factors impact the final value of their investment.
It's important to note that the calculated results are estimates based on the provided inputs and assumptions. Actual earnings may vary based on compounding methods, any penalties for early withdrawal, changes in interest rates, and other factors specific to the financial institution offering the certificate of deposit.
Certificate of Deposit Calculator Example
Certainly! Here's an example of a Certificate of Deposit (CD) calculator in Python that calculates the future value and interest earned for a given principal, interest rate, and time period:
pythonCopy Codedef calculate_future_value(principal, interest_rate, time_period):
future_value = principal * (1 + interest_rate) ** time_period
return future_value
def calculate_interest_earned(principal, future_value):
interest_earned = future_value  principal
return interest_earned
# Set the initial parameters
principal_amount = 1000 # Initial amount of the CD
interest_rate = 0.05 # Annual interest rate (5%)
time_period = 5 # Time period in years
# Calculate the future value and interest earned
future_value = calculate_future_value(principal_amount, interest_rate, time_period)
interest_earned = calculate_interest_earned(principal_amount, future_value)
# Print the results
print("Principal Amount: ${}".format(principal_amount))
print("Interest Rate: {}%".format(interest_rate * 100))
print("Time Period: {} years".format(time_period))
print("Future Value: ${}".format(future_value))
print("Interest Earned: ${}".format(interest_earned))
In this example, we define two functions. The calculate_future_value()
function takes the principal amount, interest rate, and time period as inputs, and calculates the future value of the CD using the formula: future_value = principal * (1 + interest_rate) ** time_period
.
The calculate_interest_earned()
function takes the principal amount and future value as inputs, and calculates the interest earned by subtracting the principal from the future value.
We set the initial parameters (principal_amount
, interest_rate
, and time_period
) according to your requirements. In this case, we assume an initial investment of $1000 with an annual interest rate of 5% for a time period of 5 years.
Next, we calculate the future value of the CD by calling the calculate_future_value()
function with the specified parameters. We also calculate the interest earned by calling the calculate_interest_earned()
function with the principal amount and future value.
Finally, we print the results, including the principal amount, interest rate, time period, future value, and interest earned.
When you run the code, it will display the calculated future value and the amount of interest earned for the given parameters.