CD (Certificate of Deposit) Profit Calculator – Calculate Your Fixed Deposit Earnings

A CD Profit Calculator helps you estimate how much profit (interest earned) you can make by investing in a Certificate of Deposit (CD). A CD is a low-risk investment where you deposit money for a fixed period at a fixed interest rate. At maturity, you receive your principal plus interest.

This calculator is useful for individuals who want to know:

• The future value (maturity amount) of their CD investment.
• The total profit (interest earned) from the investment.

Formula for Future Value (Maturity Amount)

The general formula for compound interest is:

$FV=P\times {\left(1+\frac{r}{n}\right)}^{n\times t}$

Where:

• $FV$ = Future Value (Maturity Amount)
• $P$ = Principal Amount (Initial Deposit)
• $r$ = Annual Interest Rate (in decimal, e.g., 5% = 0.05)
• $n$ = Number of compounding periods per year
• $t$ = Time period in years

Formula for Total Profit (Interest Earned)

Once you know the future value, you can calculate the profit as:

$Profit=FV-P$

Where:

• $Profit$ = Total Interest Earned
• $FV$ = Future Value (Maturity Amount)
• $P$​​​​​​​ = Principal Amount (Initial Deposit)

Example Calculation

Suppose you invest:

• Principal (P) = $10,000
• Annual Interest Rate (r) = 5% = 0.05
• Time (t) = 5 years
• Compounding Frequency (n) = 12 (Monthly)

Step 1: Calculate Future Value

$FV=10000\times {\left(1+\frac{0.05}{12}\right)}^{12\times 5}$

Step 2: Calculate Profit

$Profit=12,836.80-10,000$

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Final Results

• Future Value (Maturity Amount): $12,836.80
• Total Profit (Interest Earned): $2,836.80