CD Calculator 2026 — Certificate of Deposit
Calculate how much interest your Certificate of Deposit earns. Enter your deposit, APY, and term to see your exact maturity value with a month-by-month breakdown.
Quick Answer
A $10,000 CD at 4.5% APY compounded monthly earns $459.63 in interest over 12 months — ending at $10,459.63. For a 5-year CD at 4.5% APY: $10,000 grows to $12,513.63 ($2,513.63 in interest). CD interest is taxable as ordinary income. CDs are FDIC-insured up to $250,000 per depositor.
Your CD Details
CD Maturity Value — 1 Year
Final Balance
$10,459.40
Interest Earned
$459.40
Effective APY
4.594%
Your $10,000.00 deposit earns $459.40 in interest — a 4.59% total return. Interest is taxable as ordinary income in the year it is received or credited.
Growth Timeline
| Month | Interest This Period | Cumulative Interest | Balance |
|---|---|---|---|
| Month 1 | $37.50 | $37.50 | $10,037.50 |
| Month 3 | $37.78 | $112.92 | $10,112.92 |
| Month 6 | $38.21 | $227.12 | $10,227.12 |
| Month 9 | $38.64 | $342.61 | $10,342.61 |
| Month 12 | $39.08 | $459.40 | $10,459.40 |
CD Interest for Common Deposit Amounts
12-month CD at 4.5% APY, monthly compounding.
| Deposit | Interest (4% APY) | Interest (4.5% APY) | Interest (5% APY) | Maturity (4.5%) |
|---|---|---|---|---|
| $1,000 | $40.74 | $45.96 | $51.16 | $1,045.96 |
| $5,000 | $203.71 | $229.81 | $255.81 | $5,229.81 |
| $10,000 | $407.42 | $459.63 | $511.62 | $10,459.63 |
| $25,000 | $1,018.56 | $1,149.07 | $1,279.05 | $26,149.07 |
| $50,000 | $2,037.12 | $2,298.15 | $2,558.10 | $52,298.15 |
| $100,000 | $4,074.24 | $4,596.29 | $5,116.19 | $104,596.29 |
Monthly compounding. Interest is taxable ordinary income. Rates based on competitive online bank offerings as of 2026.
SoFi Checking & Savings
Earn up to 4.60% APY with no account fees, no minimums. Get $25 when you open and fund an account.
Frequently Asked Questions
How much does a $10,000 CD earn in 1 year?
At a 4.5% APY compounded monthly, a $10,000 CD earns $459.63 in interest over 12 months — ending at $10,459.63. At 5.0% APY: $511.62 in interest, ending at $10,511.62. At 4.0% APY: $407.42, ending at $10,407.42. The exact amount depends on your CD's APY and compounding frequency. Most online banks compound daily or monthly.
What is a good CD rate in 2026?
As of 2026, competitive CD rates range from 4.0% to 5.5% APY depending on the term and institution. Online banks and credit unions typically offer higher rates than traditional brick-and-mortar banks. Short-term CDs (3–6 months) often offer rates as good or better than longer terms when the yield curve is flat or inverted. Always compare the APY (Annual Percentage Yield), not just the stated interest rate — APY accounts for compounding.
What is the difference between APR and APY on a CD?
APR (Annual Percentage Rate) is the stated interest rate before compounding. APY (Annual Percentage Yield) is the effective annual return after compounding is applied. For CDs compounded daily: a 4.5% APR becomes approximately 4.603% APY. For monthly compounding: 4.5% APR becomes 4.594% APY. Banks are required by the Truth in Savings Act to disclose APY, making it the number you should use to compare CDs.
Is CD interest taxable?
Yes — CD interest is taxable as ordinary income in the year it is credited to your account (or constructively received), even if you don't withdraw it. For a 5-year CD, you owe taxes on the interest each year, not just when the CD matures. Your bank will issue a 1099-INT for any interest over $10. CD interest is taxed at your ordinary income tax rate (10%–37% federally), not the lower capital gains rate.
What happens if I withdraw a CD early?
Most CDs charge an early withdrawal penalty if you cash out before the maturity date. Common penalties: 3-month interest for CDs under 1 year, 6-month interest for 1–2 year CDs, 12-month interest for 3–5 year CDs. Some no-penalty CDs allow early withdrawal without fees — typically at slightly lower rates. Before opening a CD, understand the penalty terms in case you need the funds early.
How much does a $50,000 CD earn?
At 4.5% APY for 12 months (monthly compounding): $50,000 earns $2,298 in interest, ending at $52,298. For 2 years: $4,688, ending at $54,688. For 5 years: $12,578, ending at $62,578. The interest grows faster in later years due to compounding — year 5 earns more interest than year 1 on the same deposit because interest is being earned on prior interest.
Should I put money in a CD or a high-yield savings account?
CDs are better when: you won't need the money for a set period, you want a guaranteed rate (CDs lock in your APY), and rates are expected to fall (lock in today's rate). High-yield savings accounts are better when: you may need the money anytime (no early withdrawal penalties), you want flexibility to contribute more, or rates are expected to rise (savings APY adjusts upward). As of 2026, many competitive savings accounts offer rates close to CD rates, making the comparison tighter.
Are CDs FDIC-insured?
Yes — CDs at FDIC-member banks are insured up to $250,000 per depositor, per institution, per ownership category. This means your CD principal and interest are federally guaranteed even if the bank fails — as long as your total deposits at that institution don't exceed $250,000. Credit union CDs are insured by the NCUA up to the same $250,000 limit. CDs are one of the safest investments available.
CD Calculator by State
CD interest is taxed as ordinary income. See how your state income tax affects your net CD earnings.