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Return on CD Calculator

Formula

The formula to calculate the Return on CD (ROCD) is:

$ROCD = \frac{CV - PP}{PP} \times 100$

Where:

ROCD is the Return on CD (%)
CV is the current value of the CD ($)
PP is the purchase price of CD ($)

What is Return on CD?

Return on CD (ROCD) is a measure of the profitability of an investment in a Certificate of Deposit (CD). It is calculated by subtracting the purchase price of the CD from its current value, dividing by the purchase price, and multiplying by 100 to express it as a percentage. This metric helps investors understand the return they are earning on their investment in CDs.

Example Calculation

Let's assume the following values:

Current Value of CD: $1050
Purchase Price of CD: $1000

Step 1: Subtract the purchase price from the current value:

$1050 - 1000 = 50$

Step 2: Divide by the purchase price:

$\frac{50}{1000} = 0.05$

Step 3: Multiply by 100 to express as a percentage:

$0.05 \times 100 = 5\%$

Therefore, the Return on CD is 5%.