Reviewed by: David Chen, CFA
David Chen is a Certified Financial Analyst with extensive expertise in financial planning and analysis.
David Chen is a Certified Financial Analyst with extensive expertise in financial planning and analysis.
This tool calculates the CD Rate using the APY (Annual Percentage Yield). Enter the necessary variables to calculate the missing value.
CD Rate Calculator – APY
Not calculated yet.
Formula
APY = (F / P) ^ (1 / Q) - 1
Formula Source: Investopedia
Variables
- F: Future Value
- P: Principal
- V: Interest Rate
- Q: Time Period
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What is APY?
APY, or Annual Percentage Yield, is a percentage that reflects the yearly interest earned on an investment or deposit, taking into account the effect of compound interest.
How to Calculate CD Rate (Example)
- Step 1: Enter the principal, future value, interest rate, and time period.
- Step 2: Click “Calculate” to find the missing value.
Frequently Asked Questions (FAQ)
What is a good APY? A good APY depends on the current market rates and your financial goals.
How does time affect the APY? The longer the time period, the higher the compounded growth.
Can I calculate APY on monthly deposits? Yes, but the calculation changes slightly.