💰Reinvestment Returns Calculator

Calculate compound growth after reinvesting your savings or CD maturity proceeds

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How to Use the Reinvestment Returns Calculator

When a CD or savings account matures, reinvesting the proceeds lets compound interest work in your favor again. Enter your maturity amount, expected annual return, and reinvestment period to project your total growth and after-tax net proceeds.

Interest income is subject to ordinary income tax in the US. This calculator estimates taxes at a combined 28% rate. Use a lower rate if your combined federal and state marginal rate is below that, or consult a tax professional for a personalized estimate.

Frequently Asked Questions

Does reinvesting in a CD count as a new tax event?

Yes. When a CD matures and you receive interest, that interest is taxable in the year received, even if you immediately reinvest. The principal reinvested is not taxed again since you already paid tax on it when earned.

Can I use this for a high-yield savings account?

Absolutely. Enter your current balance as the maturity amount and your HYSA's annual yield as the return rate. Monthly compounding is typical for HYSAs.

What if I reinvest in stocks instead?

Stock returns are not guaranteed. If held over one year, gains are taxed at long-term capital gains rates (0%, 15%, or 20%), which are generally lower than ordinary income rates used for CD interest.