Your inputs

Model a term deposit

Deposit amount

The amount you lock in, from $1 through $1 billion.

Annual interest rate

The quoted nominal rate, from 0% through 25%.

Term length

How long the money stays locked in. A US CD and a Canadian GIC work the same way here.

Advanced assumptions

Compounding frequency

How often interest is added to the balance. Monthly is a common default.

Your inputs are calculated locally and are not stored.

Value at maturity$11,049.41

Over 24 months, your deposit earns $1,049.41 in interest.

Interest earned: $1,049.41
Effective annual yield: 5.1162%
Principal: $10,000.00

Formula & methodology

How maturity value and APY are found

A certificate of deposit or GIC grows by compound interest. The maturity value applies the periodic rate — the annual rate divided by the number of compounding periods per year — across every period in the term. The effective annual yield, or APY, restates the nominal rate as the true yearly return once compounding is taken into account, which makes deposits with different compounding frequencies comparable.

Maturity value = Principal × (1 + Rate ÷ n)^{n × Years}
APY = (1 + Rate ÷ n)ⁿ − 1, × 100

Principal: The amount deposited
Rate: Nominal annual interest rate, as a decimal
n: Compounding periods per year
Years: Term in months divided by 12

Worked example

$10,000 at 5% for 24 months, compounded monthly

Suppose you deposit $10,000 at a 5% annual rate for a 24-month term with monthly compounding. The periodic rate is 5% ÷ 12, and it is applied over 24 periods, giving a maturity value of $11,049.41. That is $1,049.41 of interest earned. The effective annual yield works out to 5.1162%, slightly above the 5% nominal rate because interest compounds monthly rather than once a year.

This is an educational calculation based only on the values you provide. It does not look up live rates, and it is not financial advice.

Assumptions

What this calculator assumes

The rate is fixed for the whole term and interest is left to compound rather than being paid out.
The term is entered in months and converted to years by dividing by 12.
No taxes are modeled; interest on a CD or GIC is generally taxable in the year it accrues or is paid.
No early-withdrawal penalties or promotional bonuses are included.
Money values are rounded to the nearest cent for display.

Common questions

CD & GIC FAQ

What is the difference between the rate and the APY?

The rate is the quoted nominal annual rate. The APY, or effective annual yield, folds in how often interest compounds, so it reflects the true return over a year. When interest compounds more than once a year, the APY is a little higher than the nominal rate.

Is a Canadian GIC the same as a US CD?

For this calculation, yes. A guaranteed investment certificate (GIC) in Canada and a certificate of deposit (CD) in the US both lock in a fixed amount at a fixed rate for a set term, so the maturity math is identical. Deposit insurance and tax rules differ by country.

Primary sources

Sources and review notes

Methodology last checked Jul 14, 2026. Formula implementation is covered by deterministic unit tests. No financial professional review is claimed yet.