CD Calculator & CD Ladder Builder
See what a certificate of deposit is worth at maturity — and how much interest you earn.
Calculate a single CD's maturity value, then build a CD ladder that balances higher rates with yearly access to your cash.
CDs, and why people ladder them
A certificate of deposit (CD) is a savings product that locks your money away for a set term in exchange for a fixed, guaranteed rate. Because the bank knows it can keep your cash for the whole term, CDs usually pay more than a regular savings account — and the rate can't drop while you're locked in, even if the Fed cuts. The trade-off is access: pull the money out early and you'll typically owe a penalty of several months' interest.
That's why many savers build a CD ladder — splitting the money across CDs that mature in different years so a chunk frees up regularly. CDs are best for money with a known timeline. For cash you might need at any moment, compare against a high-yield savings account, and for money you won't touch for decades, weigh a CD against investing with the Compound Interest Calculator.
A CD's APY is already the effective annual yield, so its maturity value is simply the deposit compounded at the APY over the term in years. A ladder splits the deposit into equal rungs maturing in 1, 2, … N years; this calculator gives each rung the rate for its term, interpolated between your 1-year and longest-rung APY, since longer terms usually pay more.
The ladder's value is the higher blended yield of longer terms plus liquidity: one rung matures every year, which you can spend or roll into a fresh long-term CD to keep the ladder going. That beats locking everything into a single long CD (no access for years) or a single short CD (lower rate). It pairs naturally with a high-yield savings account for flexible cash and the Inflation Calculator to check your real return holds up.
CD calculator: common questions
How is a CD's value at maturity calculated?
A CD grows at its APY (annual percentage yield), which already includes the effect of compounding. The maturity value is your deposit multiplied by (1 + APY) raised to the number of years in the term. For example, $10,000 in a 1-year CD at 4.00% APY is worth $10,400 at maturity; the same deposit in a 5-year CD at 4.00% APY grows to about $12,167.
What is a CD ladder and why build one?
A CD ladder splits your money across several CDs with staggered terms — for example, equal amounts in 1-, 2-, 3-, 4-, and 5-year CDs. One rung matures each year, which you can either spend or roll into a new long-term CD. A ladder lets you capture the higher rates of longer terms while still getting access to part of your cash every year, instead of locking everything up for five years at once.
Is a CD better than a high-yield savings account?
It depends on whether you value a locked rate or flexibility. A CD locks in its APY for the whole term, so it's useful when you expect rates to fall or you have a fixed time horizon. A high-yield savings account pays a variable rate you can access anytime, which is better for an emergency fund or if rates may rise. Many savers use both — a CD or ladder for money with a set timeline and a high-yield savings account for flexible cash.
What happens if I withdraw from a CD early?
Most CDs charge an early-withdrawal penalty, typically a set number of months of interest (for example, three months' interest on a short CD or up to a year's interest on a longer one). That penalty can eat into or even exceed the interest you've earned, so CDs suit money you won't need before maturity. A CD ladder reduces this risk by freeing up a portion of your cash each year without penalty.
Is CD interest taxable?
Yes. Interest from a CD is taxed as ordinary income in the year it's credited, even if you don't withdraw it, and the bank reports it on a 1099-INT. This calculator shows pre-tax values; your after-tax return depends on your tax bracket. Holding CDs inside a tax-advantaged account such as an IRA defers or eliminates that tax.