compound interest amortization schedule excel

The calculation for turning an APY into a monthly periodic rate to determine how much you’d earn in a month is more complicated. Repeat this process for years two and three and you’ll find that your CD will be worth $1,157.63 by the end of your three-year term. You can then add this amount to the principal to find the value of your CD after the first year ($1,050). For example, if you have a $1,000 CD with a term of three years and an APY of 5%, you can multiply $1,000 by 5% to find the interest you’d earn in the first year ($50). With these numbers, calculating interest is straightforward-simply multiply the CD balance by the APY.

The periodic interest rate of the CD, usually expressed as APY (annual percentage yield).

The term of the CD, often expressed in months.The initial deposit amount, or principal.To calculate the interest you’ll earn on a CD, you need to know three numbers: Keep the link to this calculator handy when shopping around for the best CD rates, so you can figure out which CD will offer the best return on your investment. Select “Show Schedule” at the bottom of the calculator to see how your CD would earn interest month by month or year by year, depending on whether you selected a term expressed in months or years. Use the calculator and you’ll learn that once the CD’s 12-month term is up, you’d have $125 in interest and a total of $5,125 in your account.

You spot a one-year CD with an interest rate of 2.50%-far above the national average reported by the FDIC. Put into practice, let’s say you plan to buy a 12-month CD and deposit $5,000. Interest rate: the annual percentage yield ( APY) you’ll be paidĮnter those values, then select “Calculate.” You’ll see the amount of interest you’d earn over the CD’s term and the final value of your investment.Term: the length of time, in months or years, that you’ll need to keep your money in the CD.Initial deposit: the amount of money you plan to deposit.To get the most value from our CD calculator, start by gathering the three numbers you’ll need to input:

Compound interest amortization schedule excel