CD Comparison Calculator (Advanced)
Compare two Certificates of Deposit (CDs) and find out how much interest each will earn. Each CD can differ by principal, term length, annual percentage yield (APY), and compounding frequency.
Entry Fields
You can compare two certificates of deposit. For each CD, enter the following:Principal - this is the initial deposit amount. Or, if you are rolling over a CD, its value at maturity, which is the principal and interest earned; Your financial institution can provide you with this maturity balance. Or, use our CD Compounding Calculator.
CD Term - Certificate of Deposit have term lengths, set by the financial institution; the term indicates how long your principal is to remain deposited in the account during which time it earns interest at the APY rate.
APY (%) - Annual Percentage Yield of the CD for the term, at the compounding frequency. When calculating interest, the APY is first converted from its percent representation to its decimal equivalent: APY divided by 100.
Compound Frequency - How often the financial institution compounds interest on the CD: daily, monthly, quarterly or annually. The power of compounding, unlike simple interest, is that calculated interest is added to your principal, and each subsequent compound includes the previous interest accrual.
Formula to compound interest is
where:
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A = Amount at maturity: Principal + Compounded Interest
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r = APY rate, expressed as a decimal, which is APY/100
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c = compounding times, per year. For example, if compounding is done daily, c is 365, if monthly, c is 12, if quarterly, it is 4, and if annually, it is 1
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Y = term length, based on number of years. Convert to year (e.g. from month) as necessary.