This CD Calculator is an online tool used to estimate the potential earnings from a Certificate of Deposit (CD) investment by evaluating different CD options, comparing interest rates, terms and arrangements. It also comes handy for financial planning by estimating the returns on investment and helping account holders make informed decisions about their savings and maximize them.
This calculator offers various calculation options for various CD types basing on such options as interest compound or payout, lump sum or add-ons, with or without withdrawals, and the impact of these choices on the earnings.
Fill-in guide:
- Initial balance. Enter the initial opening deposit and choose your currency from the pop-up list. Here you can compare how different balances will affect your potential earnings. Note: All other amounts will be in the same currency.
- Duration. First, choose from the pop-up list whether you want to enter the CD term in days, months or years. Then, enter a term up to a maximum of 18,250 days, 600 months or 50 years, respectively. Use whole numbers only (e.g., 18 months instead of 1.5 years).
- Start date. Click the calendar icon and choose the day you want your CD to start.
-
Interest rate. Here you can choose one of three interest options from the pop-up list:
- fixed interest rate (for most CD plans) – a consistent rate over the entire term of the CD. Choose ‘Fixed’ in the left field and enter the interest rate in the right field.
- tiered interest rate (for a tiered-rate CD) – the account is divided in several tiers, and the interest may be accrued on the entire balance based on the highest tier reached, or on portions of the balance at different rates. In the latter case, choose ‘Tiered’. Below enter the amount falling within tier 1 in the left field and the corresponding interest rate in the right field. Click ‘Add rate’ to add a new tier line and repeat the previous step. Proceed until you have all the tiers and the corresponding interest rates covered.
- periodic interest rate – the interest rate increases automatically by a predetermined amount at certain intervals over the life of the CD (for a step-up CD), or at the account holder’s request after the bank raises the interest rates on its newly issued CDs (for a bump-up CD). Choose ‘Periodic’. Below enter the day, starting from which a certain interest rate applies, in the left field and the corresponding interest rate in the right field. Click ‘Add rate’ to add a new interval and repeat the previous step. Proceed until you have all predetermined intervals and corresponding interest rates covered.
- Compound or Payout. Leave the box ‘Compound’ unchecked if you want to have the interest earned on the CD to be paid to you at specified intervals rather than adding them to the principal. Check the box ‘Compound’ if you want the interest earned on the CD to be added to the principal balance. In the latter case, the field below ‘Payout frequency’ will automatically change to ‘Compound frequency’.
- Payout frequency. Choose the payout frequency from the pop-up list: in the end, daily, weekly, monthly, quarterly, semiannually or annually. For ‘Compound frequency’, the available options are daily, weekly, monthly, quarterly, semiannually or annually.
-
Contributions (for an add-on CD). If your CD plan allows you to deposit more money into the account during the CD life, click ‘Add contribution’. In the new line, choose the add-on frequency from the pop up-list in the left field: single, monthly, once in 2 months, quarterly, semiannually or annually. Then, enter the add-on date in the middle field by clicking the calendar icon and the add-on amount in the right field.
If you want to make several add-ons, click ‘Add contribution’ and fill in the new add-on line accordingly. Repeat as required. -
Withdrawals. If you need to withdraw a portion of your balance, click ‘Add a withdrawal’. In the new line, choose the withdrawal frequency from the pop up-list in the left field: single, monthly, once in 2 months, quarterly, semiannually or annually. Then, enter the withdrawal date in the middle field by clicking the calendar icon and the amount of such contribution in the right field.
If you want to make several withdrawals, click ‘Add withdrawal’ and fill in the new line accordingly. Repeat as required.
Note: This calculator does not cover any potential penalties the bank may charge you for withdrawing a portion of your balance while keeping the CD open (not applicable to liquid (no-penalty) CDs). Also note that the number of such withdrawals may be limited by the bank. - Minimum balance. Most CDs with withdrawal options have a minimum balance requirement that should be maintained to avoid penalties or fees. Check it out with your bank and enter the amount.
Check out calculation results to see the total interest earned, the sum of initial balance (deposit) and interest, total add-ons and withdrawals (if any) in absolute figures and capital growth in interest. To compare several calculations, check out the history of your calculations.