Saving
Interest earned
The maturity value minus the original deposit.
The Formula
Interest = A - P
The maturity value minus the original deposit.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| I | Interest earned | currency | Total interest over the term. |
What Each Symbol Means
Icurrency
Interest earned
Total interest over the term.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate cd return page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate CD Return, filed under Finance. Every number the guide produces comes from substituting into this one line.