Half-Term Analysis Calculator
Get the Best CD Rates
We’ve helped thousands of institutional and individual investors invest over $12.99 billion in CDs.
Get Started >
Whether you have a crystal ball or not, our Half-Term Analysis Calculator can help you decide if a short-term or longer-term CD is more beneficial.
Instructions
You Enter:
| Term: | Box B should be twice Box A.
| | Rate: | Enter highest rate you can find on the respective terms
| | Principal: | Amount you are investing (boxes should be the same)
|
Everything else is calculated:
| 1-year Earnings: | Amount of interest earned during the 1st year at the different rates.
| | Half-Term Earnings: | Amount of interest earned during the 1st term and half of the 2nd term.
| | Full-Term Earnings: | Amount of interest earned during the 2nd term.
| | Half-Term Deficit: | Difference in earnings between the two rates and terms.
| | Half-Term Deficit (Annual): | Annualized difference in earnings between the two rates and terms
| | Break-Even Rate: | Rate that is needed after the 1st term in order break even versus the 2nd term.
|
Example:
If you press calculate with our defaulted values, you will get a break-even rate of 2.15%. In our example, we are comparing a 2-year and a 4-year CD. If you believe rates will be a 2.15% or higher in two years, you may not want to go with the longer-term CD. But if you don’t think rates will rise that much, you may be better off with the 4-year CD.
Click here for our CD Calculator.
| 
