CD Calculator
What a certificate of deposit earns by maturity, and what you keep if you close it early and pay the penalty.
Interest earned on a $10,000 CD, by term and APY
| Term | 3.00% APY | 4.00% APY | 4.50% APY | 5.00% APY |
|---|---|---|---|---|
| 3 months | $74 | $99 | $111 | $123 |
| 6 months | $149 | $198 | $223 | $247 |
| 1 year | $300 | $400 | $450 | $500 |
| 2 years | $609 | $816 | $920 | $1,025 |
| 3 years | $927 | $1,249 | $1,412 | $1,576 |
| 5 years | $1,593 | $2,167 | $2,462 | $2,763 |
Closing a 12-month $10,000 CD at 4.25% APY early: interest you keep after the penalty
| Closed after | 3 months' penalty | 6 months' penalty | 12 months' penalty |
|---|---|---|---|
| 3 months | $0 | −$106 (from principal) | −$320 (from principal) |
| 6 months | $106 | $0 | −$215 (from principal) |
| 9 months | $212 | $107 | −$108 (from principal) |
How this calculator works
APY already includes compounding, so a deposit D held for m months at an APY grows to D × (1 + APY)^(m/12).
Banks state early withdrawal penalties as an amount of interest: "90 days' interest", "6 months' interest". The calculator charges that many months of interest at the CD's rate on the deposit. If you haven't earned that much yet, the rest comes out of your principal.
What it assumes
- Interest stays in the CD until maturity. Some CDs pay it out monthly instead, which earns slightly less.
- Penalty rules vary: some banks use simple interest, some a share of interest earned, and some charge on the amount withdrawn. Check your account agreement.
- By federal rule, money taken out within six days of opening a CD costs at least seven days' simple interest (Regulation D, 12 CFR 204.2).
Questions people ask
How much will $10,000 earn in a 1-year CD?
At 4.25% APY, $425. At 5% APY, $500. The first table above has other terms and rates.
What is a CD early withdrawal penalty?
A charge for taking money out before the term ends, usually a number of days' or months' interest. Shorter CDs tend to have smaller penalties; five-year CDs often charge six months' to a year's interest.
Can a CD penalty take money from my principal?
Yes, if you close early before earning enough interest to cover it. Closing a $10,000, 4.25% CD after 3 months with a 6 months' interest penalty costs about $106 of principal.
Is it worth breaking a CD for a higher rate?
Sometimes. Compare the penalty with the extra interest the new rate would earn over the rest of the term. Use this calculator for the penalty, then the compound interest calculator for the new rate.
Are CDs FDIC insured?
At FDIC-insured banks, yes, up to $250,000 per depositor, per bank, per ownership category, along with your other deposits there. Credit union certificates are insured the same way by the NCUA.
Is CD interest taxable before the CD matures?
Yes. Interest is taxable in the year it is credited to the CD, even if you can't withdraw it without a penalty. A penalty you pay is deductible as an adjustment to income.
Terms explained
Related calculators
Sources
- FDIC: Deposit insurance
- eCFR: Regulation D, definitions including time deposits (12 CFR 204.2)
- IRS: Topic 403, Interest received
Updated by the RateHerald team. The maths is tested against worked examples; report a problem.