CD Calculator
APY vs. APR on a CD
APY is the effective yearly yield including compounding — a $10,000 CD at 5% APY is worth exactly $10,500 after one year. APR is the nominal rate before compounding, so the same 5% APR compounded daily yields slightly more than 5%. If your bank quotes one number, use the matching mode above.
Frequently Asked Questions
How is the early-withdrawal penalty calculated?
This tool estimates it as the average interest earned per month multiplied by the penalty length (for example, six months of interest). Banks define the exact rule in the account agreement, and some penalties can exceed interest earned and dip into principal.
What happens if I withdraw before maturity?
You forfeit interest as set by the penalty schedule, and in extreme cases part of the principal. The penalty-adjusted value above shows a realistic estimate so you can weigh breaking the CD against waiting.