CD calculator
See how much a certificate of deposit (CD) will earn before you open one. Enter your deposit, the APY the bank quotes, and the term. By default, we prefill the FDIC's latest national average rate for a 12-month CD; links from Best CD Rates prefill the selected offer instead.
How much interest does $10,000 earn in a CD?
Interest earned on a $10,000 deposit, before taxes, assuming interest stays in the CD until maturity. Figures are calculated with the formula below, not quotes from any bank.
| APY | 6 months | 12 months | 24 months | 60 months |
|---|---|---|---|---|
| 1.76% (FDIC national 12-month average) | $87.62 | $176.00 | $355.10 | $911.53 |
| 3.00% | $148.89 | $300.00 | $609.00 | $1,592.74 |
| 4.00% | $198.04 | $400.00 | $816.00 | $2,166.53 |
| 4.50% | $222.52 | $450.00 | $920.25 | $2,461.82 |
| 5.00% | $246.95 | $500.00 | $1,025.00 | $2,762.82 |
The CD interest formula
When a bank quotes an APY, your balance at maturity is:
Balance = Deposit × (1 + APY)months ÷ 12
If you only have the interest rate (the nominal rate before compounding), convert it to APY first: APY = (1 + rate ÷ n)n − 1, where n is how many times a year interest compounds (365 for daily, 12 for monthly). Because APY already includes compounding, it is the fairest way to compare CDs from different banks. Federal Truth in Savings rules (Regulation DD) require banks to disclose it.
How your CD compares to the national average
The FDIC's national rate is a simple average of rates offered by insured banks and branches, so it is pulled down by large banks that pay little on deposits. The latest 12-month CD average is 1.76% (as of 2026-10-01), and the average savings account pays 0.38% (as of 2026-10-01, FRED SNDR). Nationwide online banks and credit unions often pay far more. See today's top offers on our Best CD Rates page and five years of history on the national rates charts.
Before you open a CD
- Early withdrawal penalty. Most banks charge several months of interest if you cash out early. Regulation D only requires a minimum of seven days' simple interest on withdrawals within six days of deposit; banks set the rest.
- Insurance limits. Keep each bank's total under $250,000 per ownership category for full FDIC coverage (or NCUA coverage at credit unions).
- Taxes. CD interest is generally taxable each year it is credited, even if the CD hasn't matured (IRS Topic 403).
- Renewal. Many CDs renew automatically at maturity at whatever rate the bank offers then. Note the grace period so you can move the money if you want.
- Find a bank. Use our bank finder to look up any FDIC-insured bank's branches and financial data.
Frequently asked questions
How is CD interest calculated?
Banks quote an annual percentage yield (APY), which already includes compounding. Your ending balance is the deposit times (1 + APY) raised to the number of years in the term. For example, $10,000 at 4.00% APY for 12 months grows to $10,400. If you only know the interest rate, convert it first: APY = (1 + rate ÷ n)^n − 1, where n is the number of compounding periods per year.
What is the difference between APY and interest rate on a CD?
The interest rate (sometimes called APR or the nominal rate) does not include compounding. APY does. Federal Truth in Savings rules (Regulation DD) require banks to disclose APY so you can compare accounts. A 4.00% rate compounded daily works out to about 4.08% APY.
What is the national average 12-month CD rate?
The FDIC publishes a monthly national average rate for 12-month CDs, a simple average of rates offered by insured banks and branches. This calculator loads the latest figure from FRED (series NDR12MCD) and shows the date it applies to. Top nationwide CDs often pay well above the average, so compare offers on our Best CD Rates page.
Is CD interest taxable?
Generally yes. CD interest is usually taxable as ordinary income in the year it is credited to your account, even if you don't withdraw it, and banks report it on Form 1099-INT. See IRS Topic No. 403 for details. This calculator shows pre-tax earnings.
What happens if I withdraw from a CD early?
Most banks charge an early withdrawal penalty, often a set number of days or months of interest. Federal Regulation D only sets a floor: at least seven days of simple interest on money withdrawn within six days of deposit. Check the specific penalty in your bank's account agreement before you open the CD.
Are CDs FDIC-insured?
CDs at FDIC-insured banks are covered up to $250,000 per depositor, per insured bank, for each account ownership category, including principal and accrued interest. Credit union certificates are insured by the NCUA on the same terms.
Sources: FDIC National Rates and Rate Caps, retrieved via FRED®, Federal Reserve Bank of St. Louis; 12 CFR Part 1030 (Regulation DD); 12 CFR 204.2 (Regulation D); IRS Topic No. 403. Results are estimates for illustration and exclude taxes and fees. Not financial advice.