Certificate of Deposit (CD) & Savings Interest Calculator
Calculate the future value of your CD or high-yield savings account. Includes options for compounding frequency and capital gains tax deduction.
About
Fixed-income investments like Certificates of Deposit (CDs) and High-Yield Savings Accounts (HYSA) are cornerstones of a safe financial portfolio. While the returns are guaranteed, the actual yield depends heavily on the frequency of compounding (how often interest is calculated on top of previously earned interest) and the tax impact on your earnings.
This calculator allows you to project the exact growth of your principal over time. Unlike basic interest tools, it includes a "Tax Impact" toggle to reveal your net profit, helping you decide if a taxable CD is better than a tax-advantaged alternative like a Municipal Bond or IRA.
Formulas
The calculator uses the compound interest formula adjusted for the tax rate on the gained interest.
Where P is Principal, r is annual interest rate (decimal), n is times compounded per year, and t is time in years.
Reference Data
| Term Length | Typical APY (High Yield) | Compounding Impact (on $10k) | Real Yield (After 3% Inflation) |
|---|---|---|---|
| 6 Months | 4.50% | $225 | 1.50% |
| 1 Year | 4.75% | $475 | 1.75% |
| 18 Months | 4.60% | $705 | 1.60% |
| 2 Years | 4.30% | $880 | 1.30% |
| 3 Years | 4.00% | $1,248 | 1.00% |
| 5 Years | 3.80% | $2,050 | 0.80% |
| 10 Years | 3.50% | $4,160 | 0.50% |