Calculator | Certificate of Deposit

User Guide

This guide explains how to use the Certificate of Deposit (CD) Calculator to estimate your investment’s growth over time, based on initial deposit, interest rate, compounding frequency, and other details.

1. Initial Deposit (Principal)

Enter the amount you initially deposit into the CD account. This amount is the base for interest calculations. Enter a positive numeric value without commas or symbols (e.g., enter "10000" for $10,000).

2. Nominal Annual Interest Rate (%)

Input the annual interest rate in percentage form (e.g., enter "5" for a 5% interest rate). The calculator uses this rate to calculate interest accumulation based on the selected compounding frequency.

3. Compound Frequency

Choose how often interest is compounded from the dropdown menu. Options include:

• Annually (APY): Interest compounds once per year.
• Semiannually: Interest compounds twice per year.
• Quarterly: Interest compounds four times per year.
• Monthly (APR): Interest compounds every month.
• Continuously: Interest compounds continuously, using an exponential formula for calculations.

4. Deposit Length

Enter the term length for the CD in years and months. For example, if your CD term is 2 years and 6 months, enter "2" in the years field and "6" in the months field. The months value should not exceed 12.

5. Marginal Tax Rate (%)

Enter your marginal tax rate if you want the calculator to estimate the tax effect on interest earnings. Entering a percentage here will adjust the calculations to account for taxes. This field is optional.

6. Buttons

Calculate: Click to calculate the CD’s end balance, total interest, and tax adjustments (if applicable). Results display in the “Results” section.
Reset: Clears all input fields and hides results, allowing you to start a new calculation.

7. Results

After clicking "Calculate," the results section displays:

• End Balance ($): The total balance at the end of the CD term.
• Total Interest ($): The total interest earned over the term.
• Total Tax ($): Tax on interest (if tax rate is provided).
• Interest After Tax ($): Total interest after tax deductions (if tax rate is provided).

Additionally, a visual chart shows the distribution between the end balance and the total interest.