CD Calculator Formula

Understand the math behind the cd calculator. Each variable explained with a worked example.

Use the CD Calculator

Formulas Used

Value at Maturity

maturity_value = deposit * pow(1 + apy / 100, years)

Interest Earned

interest_earned = maturity_value - deposit

Variables

VariableDescriptionDefault
depositDeposit Amount(USD)10000
apyAPY (Annual Percentage Yield)(%)5
term_monthsTerm(months)12
yearsDerived value= term_months / 12calculated

How It Works

CD Interest Formula

Maturity Value = Deposit × (1 + APY/100)^years

CDs typically offer higher rates than savings accounts in exchange for locking up your money for a fixed term.

Worked Example

$10,000 CD at 5% APY for 12 months.

deposit = 10000apy = 5term_months = 12
  1. 01Value = $10,000 × (1.05)^1 = $10,500
  2. 02Interest earned = $500

Ready to run the numbers?

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