CD Calculator

More frequent compounding applies the same stated Annual Interest Rate (APR) in smaller increments more often, which lets each increment of interest start earning its own interest sooner. That produces a higher Annual Percentage Yield (APY) from the identical APR -- daily compounding yields slightly more than monthly, which yields more than annual, though the gap is usually modest at typical CD rates.

APR is the stated nominal rate before compounding; APY is the actual annualized rate the deposit experiences once Compounding Frequency is applied. APY is always greater than or equal to APR whenever compounding happens more than once a year, since interest earned partway through the year begins compounding on itself before the year is over.

This calculator does not model early withdrawal at all -- Maturity Value and Total Interest Earned both assume the deposit stays untouched for the full CD Term. Most real CDs charge an early-withdrawal penalty, commonly forfeiting some months of interest, which can reduce or entirely offset the interest this calculator projects if funds are removed early.

Yes, for a fixed positive Annual Interest Rate -- more time means more compounding periods, so Maturity Value rises (or at minimum holds flat) as CD Term increases. In practice, though, longer-term CDs are often offered at a different rate than shorter-term ones, so comparing real CD offers requires checking the rate for each specific term rather than assuming a single rate applies across all terms.

Deposit Amount is a linear multiplier throughout the compound-interest formula regardless of how many times per year interest compounds -- doubling the deposit always doubles Maturity Value at a given rate and term. Compounding Frequency instead changes the effective rate applied to whatever deposit amount is entered, which is a separate lever from the deposit size itself.