acalculator

Find my CD early withdrawal penalty

Type the amount in your CD, its APY and term, how many months you have held it, and the penalty in months of interest from your account agreement. The CD early withdrawal penalty calculator shows the penalty, the interest earned so far, and what you get back.

Your numbers

Banks set the penalty; check your CD’s terms.
Early withdrawal penalty
$112.50

Closing the CD early costs a penalty of $112.50; you get back $10,110.02.

Interest earned so far
$222.52
You get back
$10,110.02
Interest kept after the penalty
$110.02
Deposit lost to the penalty
$0.00
Balance at maturity instead
$10,450.00
Gain from waiting
$339.98

Early withdrawal penalty: $112.50. Closing the CD early costs a penalty of $112.50; you get back $10,110.02.

The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use

How to calculate

Works out the penalty for closing a certificate of deposit early when the bank charges a number of months of interest, against the interest earned so far, and what you get back.

Example with the default inputs (Amount in the CD $10,000.00, APY 4.5%, CD term (months) 12, Months held so far 6, Penalty: months of interest 3): Closing the CD early costs a penalty of $112.50; you get back $10,110.02.

Method: penalty = deposit × APY × penalty months ÷ 12 (exact); interest so far = deposit × ((1 + APY)^(months held ÷ 12) − 1); you get back = deposit + interest so far − penalty.

  • The penalty is a number of months of simple interest on the whole deposit at the APY. Some banks use the interest rate instead of the APY, count days, or charge on the amount withdrawn only; check your account agreement.
  • You withdraw the whole CD. Interest so far grows at the APY for the months held.
  • Taxes are not included.

Machine-readable copies: Markdown, JSON.

Worked examples

Each example is checked against the calculator on every build.

  1. Amount in the CD $10,000.00, APY 4.5%, CD term (months) 12, Months held so far 6, Penalty: months of interest 3 gives Early withdrawal penalty $112.50, Interest earned so far $222.52, You get back $10,110.02, Deposit lost to the penalty $0.00, Balance at maturity instead $10,450.00.Source: Consumer Financial Protection Bureau, Regulation DD (Truth in Savings), 12 CFR 1030, Appendix A: annual percentage yield calculation, https://www.consumerfinance.gov/rules-policy/regulations/1030/a/ (retrieved 2026-10-03)
  2. Amount in the CD $10,000.00, APY 4.5%, CD term (months) 12, Months held so far 1, Penalty: months of interest 6 gives Early withdrawal penalty $225.00, Interest earned so far $36.75, You get back $9,811.75, Deposit lost to the penalty $188.25.Source: No federal maximum on the penalty: Office of the Comptroller of the Currency, HelpWithMyBank, What are the penalties for withdrawing money early from a CD? (federal law sets a minimum penalty of at least seven days’ simple interest for withdrawals within six days of the deposit, and no maximum), https://www.helpwithmybank.gov/help-topics/bank-accounts/certificates-of-deposit/cd-penalties.html (retrieved 2026-10-03)
  3. Amount in the CD $25,000.00, APY 5%, CD term (months) 60, Months held so far 24, Penalty: months of interest 12 gives Early withdrawal penalty $1,250.00, Interest earned so far $2,562.50, You get back $26,312.50, Balance at maturity instead $31,907.04.Source: Consumer Financial Protection Bureau, Regulation DD (Truth in Savings), 12 CFR 1030, Appendix A: annual percentage yield calculation, https://www.consumerfinance.gov/rules-policy/regulations/1030/a/ (retrieved 2026-10-03)

How it works

With the deposit D, the APY a (as a decimal), the term T and months held h (h must be less than T), and a penalty of N months of interest:

  • Early withdrawal penalty P = D × a × N ÷ 12, worked out in exact decimals.
  • Interest earned so far E = D × ((1 + a)^(h ÷ 12) − 1).
  • You get back = D + E − P.
  • Interest kept after the penalty = E − P (negative when the penalty takes some of the deposit).
  • Deposit lost to the penalty = max(0, P − E).
  • Balance at maturity instead M = D × (1 + a)^(T ÷ 12); gain from waiting = M − what you get back.

Rules

  • Deposit from $1 to $10¹⁰; APY from 0% to 20%; term 1 to 120 months; months held from 0 up to (not including) the term; penalty from 0 to 60 months.

Assumptions

  • The penalty is simple interest on the whole deposit at the APY; you close the whole CD. Taxes are not included.

Worked examples by hand

The default: $10,000 at 4.5%, 12-month CD, closed after 6 months, 3-month penalty. P = 10,000 × 0.045 × 3 ÷ 12 = $112.50. E = 10,000 × (1.045^0.5 − 1) = $222.52. You get back 10,000 + 222.52 − 112.50 = $10,110.02. At maturity it would be 10,000 × 1.045 = $10,450.

Closed after 1 month with a 6-month penalty. P = 10,000 × 0.045 × 6 ÷ 12 = $225. E = 10,000 × (1.045^(1/12) − 1) = $36.75. You get back $9,811.75; $188.25 of the deposit is lost.

$25,000 at 5%, 5-year CD, closed after 2 years, 12-month penalty. P = 25,000 × 0.05 = $1,250. E = 25,000 × (1.05² − 1) = $2,562.50. You get back $26,312.50; at maturity 25,000 × 1.05⁵ = $31,907.04.

Other questions people ask

How is a CD early withdrawal penalty calculated?

When your agreement states the penalty as N months of interest: penalty = deposit × rate × N ÷ 12. A 3-month penalty on $10,000 at 4.5% is 10,000 × 0.045 × 3 ÷ 12 = $112.50.

Is there a legal limit on the penalty?

Federal law sets a minimum, at least seven days’ simple interest if you withdraw within six days of the deposit, but no maximum. The bank’s penalty is in your account agreement.

Can the penalty take part of my deposit?

Yes, if you close early enough. After 1 month a $10,000 CD at 4.5% has earned $36.75; a 6-month penalty of $225 takes the rest from the deposit, so you get back $9,811.75.

Is it worth breaking a CD for a higher rate?

Compare what you get back now, moved to the new rate for the rest of the term, with the balance at maturity shown here. The gain from waiting is what you give up by closing now.

Why does the calculator use the APY?

The APY is the rate most CDs are quoted at, and interest so far grows at the APY for the months held. Some banks work out the penalty on the interest rate rather than the APY or count days, so check your agreement.

What if my CD has matured?

There is no early withdrawal penalty after maturity. Check your CD’s maturity date and what your bank does with the money then.