The magnetic properties of CoN clusters (N≤7) deposited on Pd(111) have been determined in the framework of a self-consistent d-band model Hamiltonian. Results are given for the spin and orbital magnetic moments and for the magnetic anisotropy energy for different structures of the CoN clusters. We find that the magnetic orbital contribution to the total magnetic moment can be of the order of 20%. The magnetization direction of CoN changes in most cases from in-plane to off-plane upon deposition. We observe that the main contribution to the magnetic anisotropy energy results from the cluster–substrate interface. Comparison of the magnetic properties between deposited and free clusters is also provided. © 2000 American Institute of Physics.