# CD Calculator

The CD calculator below lets you know how big your portfolio can become after one, two or five years. Using the free calculator, you can look at the growth potential of your investment over time with a certificate of deposit. As you enter the variables, the CD calculator automatically updates. You’ll see how the investment and interest compound each year.

For a better understanding of the CD calculator inputs, here’s a breakdown…

## CD Calculator Definitions

• Starting Amount (\$) – The initial deposit when you open the CD
• Additional Contributions – To see how one CD would grow, you can set the additional contribution box to 0. Although, if you plan to invest in CDs on a regular basis and with the same amounts, you can use the additional contribution box and frequency dropdown. Investing more on a regular basis can really improve your long-term returns.
• Frequency – Set the frequency to “Annually” when calculating the growth of one CD
• Rate of Return (%) – The rate of return is the interest rate for a CD
• Years to Grow – The length of time you agree to leave your funds deposited in the CD

If you’re interested in learning more, check out this complete overview on CDs. It gives a complete overview, including various types of CDs.

## CD Calculator Example

You invest \$10,000 in a CD at a fixed interest rate of 5%. The term of maturity is 5 years. Here are what the results look like for the CD’s total interest and end balance…

When the loan matures, you will get back the initial investment of \$10,000 as well as interest. The return on the CD for the period of five years is \$2,763. Your maturity proceeds total to \$12,763.

## How to Improve CD Calculator Returns

The best way to maximize your gains is to make a larger principal investment and to invest in a CD for a longer period of time. A higher interest rate is generally associated with a longer loan term. A CD could be the perfect option if you have some extra cash you want to keep safe and make a little money on.

CDs are virtually risk-free investments. As a result, you’ll see lower returns than other assets and there are many investing opportunities out there. That’s why Investment U has brought together some of the best minds in the investing world. You can sign up for our free e-letter below to gain some insight from them. Our experts offer a wide range of investing advice and tips.

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