Cd Account Calculator

CD Account Growth Calculator

Annually Semi-Annually Quarterly Monthly Daily

function calculateCDGrowth() { var initialDeposit = parseFloat(document.getElementById("initialDeposit").value); var annualRate = parseFloat(document.getElementById("annualRate").value); var cdTerm = parseFloat(document.getElementById("cdTerm").value); var compoundingFrequency = parseInt(document.getElementById("compoundingFrequency").value); var resultDiv = document.getElementById("cdResult"); if (isNaN(initialDeposit) || isNaN(annualRate) || isNaN(cdTerm) || initialDeposit < 0 || annualRate < 0 || cdTerm <= 0) { resultDiv.innerHTML = "Please enter valid positive numbers for all fields."; return; } var rateAsDecimal = annualRate / 100; var futureValue = initialDeposit * Math.pow((1 + rateAsDecimal / compoundingFrequency), (compoundingFrequency * cdTerm)); var totalInterestEarned = futureValue – initialDeposit; resultDiv.innerHTML = "Future Value of CD: $" + futureValue.toFixed(2) + "" + "Total Interest Earned: $" + totalInterestEarned.toFixed(2) + ""; } // Initial calculation on page load for default values window.onload = calculateCDGrowth;

Understanding Your CD Account Growth

A Certificate of Deposit (CD) is a type of savings account that holds a fixed amount of money for a fixed period of time, and in return, the issuing bank pays you interest. Unlike a regular savings account, you typically cannot withdraw the money from a CD until the term ends without incurring a penalty. This makes CDs a low-risk investment option, ideal for saving money you won't need access to for a specific period.

How the CD Account Growth Calculator Works

Our CD Account Growth Calculator helps you estimate how much your initial deposit will grow over a specified term, taking into account the annual interest rate and how frequently the interest is compounded. Understanding these factors is crucial for making informed financial decisions.

Input Fields Explained:

• Initial Deposit ($): This is the principal amount of money you plan to invest in the CD. It's the starting point for your investment growth.
• Annual Interest Rate (%): This is the yearly percentage rate your CD will earn. Higher rates mean faster growth, but rates are typically fixed for the CD's term.
• CD Term (Years): This is the duration for which your money will be locked into the CD. Terms can range from a few months to several years.
• Compounding Frequency: This refers to how often the interest earned is added back to your principal, which then also starts earning interest. More frequent compounding (e.g., monthly vs. annually) leads to slightly higher returns due to the power of compound interest.

Output Explained:

• Future Value of CD: This is the total amount of money you will have at the end of the CD term, including your initial deposit and all the interest earned.
• Total Interest Earned: This figure shows you the total profit you've made from the CD investment, which is the future value minus your initial deposit.

Example Calculation:

Let's say you deposit $10,000 into a CD with an Annual Interest Rate of 4.5% for a CD Term of 3 years, and the interest is compounded Monthly.

Using the calculator:

• Initial Deposit: $10,000
• Annual Interest Rate: 4.5%
• CD Term: 3 Years
• Compounding Frequency: Monthly (12 times per year)

The calculator would show:

• Future Value of CD: Approximately $11,443.16
• Total Interest Earned: Approximately $1,443.16

This example demonstrates how your initial investment can grow significantly over time, even with a relatively short term, thanks to the consistent interest rate and the effect of compounding.