Interest Rate Cds Calculator

US depositories must advertise the APY, so the advertised number is normally the APY.
Added to the term in years, for certificates quoted as 18 or 30 months.
Used only when solving for the rate or the term.
Most certificates forfeit a stated number of months' interest if cashed in early. Take the number from your disclosure.
Set this to model an early withdrawal. 0 means the certificate is held to maturity.
Certificate interest is normally taxable in the year it is credited.
Rate needed for the target
18.236710 %
CD Calculator
Value at maturity
12,000.00
Interest earned
2,000.00
Annual percentage yield
20.0000 %
Nominal annual rate
18.236710 %
Interest paid out each period
5.00
Interest after tax
2,000.00
Value after tax on interest
12,000.00
Early-withdrawal penalty
0.00
Proceeds if cashed in early
12,000.00
Term in years
1.0000 years
Worked out from 12 CFR Part 1030 (Regulation DD), Appendix A - Annual Percentage Yield Calculation and 2 other sources.
Certificate rates are set by each institution and change; enter the rate from your own disclosure rather than assuming one.

How this is worked out

4 steps
  1. A 4.5% APY compounded daily (365 a year) is a nominal rate of 18.23671%.
  2. A = P(1 + r/n)^(n t) = 10000 * (1 + 0.182367/365)^(365 * 1).
  3. Value at maturity = 12000, of which 2000 is interest.
  4. Solving for the rate: r = n[(target/P)^(1/(n t)) - 1] = 18.23671% nominal.
Balance at each anniversarytable
yearbalanceinterest
112,0002,000

Results are general information, not financial, tax, legal, medical or engineering advice.