GIC & CD calculator
See exactly what a GIC (Canada) or CD (U.S.) will earn. Enter your deposit, rate, and term and we'll calculate your value at maturity, total interest, and effective annual yield — accounting for compounding.
Assumes the rate holds for the full term and interest stays invested. Real GIC returns are taxed unless held in a registered/tax-advantaged account.
A GIC/CD's value at maturity is principal × (1 + rate ÷ n)n × years, where n is the number of compounding periods per year. The interest you earn is that maturity value minus your deposit.
How the calculation works
A GIC or CD pays a fixed interest rate over a set term. With compound interest, each period's interest is added to your balance and itself earns interest going forward. The more often interest compounds, the more you earn — which is why the effective annual yield (APY) can exceed the posted rate. If interest is instead paid only at maturity with no compounding, the growth is linear.
Frequently asked questions
How is GIC / CD interest calculated?
Your maturity value is principal × (1 + rate ÷ compounding periods) raised to the power of (compounding periods × years). For a deposit paid at maturity with no compounding, it's simply principal × (1 + rate × years). The interest earned is the maturity value minus your original deposit.
What's the difference between a GIC and a CD?
They're the same product with different names: a GIC (Guaranteed Investment Certificate) in Canada and a CD (Certificate of Deposit) in the United States. Both are low-risk term deposits where you lock in a fixed rate for a set period. GICs are protected by CDIC and CDs by the FDIC, up to applicable limits.
Does compounding frequency change how much I earn?
Yes. More frequent compounding (monthly vs. annually) earns slightly more because interest starts earning interest sooner. The effective annual yield (APY) captures this — it's the true annual return after compounding, which is why APY can be higher than the stated rate.
Is GIC or CD interest taxable?
Generally yes. Interest is taxed as income unless the deposit is held in a registered or tax-advantaged account (such as a TFSA, RRSP, or FHSA in Canada, or an IRA in the U.S.). This calculator shows pre-tax returns.
Researching and writing about personal finance, savings, and rates since 2026.
“GIC & CD Calculator — VaultNerd” — VaultNerd, https://www.vaultnerd.com/tools/gic-calculator, updated June 2026.
- CDIC (Canada) and FDIC (U.S.) deposit-insurance guidelines
- Standard compound-interest formula A = P(1 + r/n)^(nt)