CalculateY
Quick Answer
A $10,000 CD at 5.00% APY for 12 months compounded monthly earns an estimated $512 in interest, bringing the total to approximately $10,512.
Common Examples
| Input | Result |
|---|---|
| $10,000 at 5% APY for 12 months (monthly) | Estimated $10,512 |
| $5,000 at 4.5% APY for 6 months (daily) | Estimated $5,113 |
| $25,000 at 4% APY for 5 years (quarterly) | Estimated $30,505 |
| $50,000 at 5.25% APY for 2 years (monthly) | Estimated $55,523 |
| $1,000 at 3.5% APY for 3 months (monthly) | Estimated $1,009 |
How It Works
This calculator uses the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
- A = estimated final balance at maturity
- P = principal (initial deposit amount)
- r = annual percentage yield as a decimal (e.g., 5% = 0.05)
- n = number of times interest compounds per year
- t = term in years (months / 12)
Interest earned = A - P.
Worked example
For a $10,000 CD at 5% APY for 12 months, compounded monthly: r = 0.05, n = 12, t = 1. A = 10000 x (1 + 0.05/12)^(12 x 1) = 10000 x (1.004167)^12 = 10000 x 1.05116 = $10,511.62. Estimated interest earned = $511.62.
Early withdrawal
Most CDs charge a penalty for early withdrawal, commonly 3 months of interest for terms of 12 months or less, and 6 months of interest for longer terms. The exact penalty varies by institution.
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