{
  "id": "cd-early-withdrawal-penalty",
  "version": "8683b5fe0ad5",
  "status": "published",
  "name": "CD Early Withdrawal Penalty Calculator",
  "question": "Find my CD early withdrawal penalty",
  "summary": "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.",
  "category": "finance",
  "subcategory": "investing",
  "url": "https://www.acalculator.org/finance/cd-early-withdrawal-penalty-calculator",
  "markdown": "https://www.acalculator.org/finance/cd-early-withdrawal-penalty-calculator.md",
  "kind": "function",
  "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.",
  "assumptions": [
    "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 Some banks use the interest rate instead of the APY, count days, or charge on the amount withdrawn only; check your account agreement.",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."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "deposit": {
        "title": "Amount in the CD",
        "description": "The amount you deposited in the CD.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 1,
        "maximum": 10000000000
      },
      "apy": {
        "title": "APY",
        "description": "The CD’s annual percentage yield.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 20
      },
      "term": {
        "title": "CD term (months)",
        "description": "The CD’s full term in months.",
        "type": "integer",
        "minimum": 1,
        "maximum": 120
      },
      "held": {
        "title": "Months held so far",
        "description": "How many months since you opened the CD. It must be less than the term.",
        "type": "number",
        "minimum": 0,
        "maximum": 120
      },
      "penalty": {
        "title": "Penalty: months of interest",
        "description": "The penalty in your account agreement, as months of interest (for example 3, 6 or 12).",
        "type": "number",
        "minimum": 0,
        "maximum": 60
      }
    }
  },
  "outputs": {
    "penalty": {
      "label": "Early withdrawal penalty",
      "description": "Deposit × APY × penalty months ÷ 12: that many months of interest on the deposit.",
      "format": "money"
    },
    "earned": {
      "label": "Interest earned so far",
      "description": "Deposit × ((1 + APY)^(months held ÷ 12) − 1).",
      "format": "money"
    },
    "back": {
      "label": "You get back",
      "description": "Deposit + interest so far − penalty.",
      "format": "money"
    },
    "kept": {
      "label": "Interest kept after the penalty",
      "description": "Interest so far − penalty. Negative means the penalty takes some of your deposit.",
      "format": "money"
    },
    "principalLost": {
      "label": "Deposit lost to the penalty",
      "description": "The part of the penalty the interest does not cover, or $0.",
      "format": "money"
    },
    "maturity": {
      "label": "Balance at maturity instead",
      "description": "Deposit × (1 + APY)^(term ÷ 12) if you wait for the full term.",
      "format": "money"
    },
    "wait": {
      "label": "Gain from waiting",
      "description": "Balance at maturity − what you get back now.",
      "format": "money"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "deposit": 10000,
      "apy": 4.5,
      "term": 12,
      "held": 6,
      "penalty": 3
    },
    "outputs": {
      "penalty": 112.5,
      "earned": 222.52415013043634,
      "back": 10110.024150130437,
      "kept": 110.02415013043634,
      "principalLost": 0,
      "maturity": 10450,
      "wait": 339.9758498695628
    },
    "text": "Closing the CD early costs a penalty of $112.50; you get back $10,110.02."
  },
  "examples": [
    {
      "given": {
        "deposit": 10000,
        "apy": 4.5,
        "term": 12,
        "held": 6,
        "penalty": 3
      },
      "expect": {
        "penalty": 112.5,
        "earned": 222.52415013043648,
        "back": 10110.024150130437,
        "principalLost": 0,
        "maturity": 10450
      },
      "source": "hand calculation in content.mdx: 10,000 × 4.5% × 3 ÷ 12 = 112.50; 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)"
    },
    {
      "given": {
        "deposit": 10000,
        "apy": 4.5,
        "term": 12,
        "held": 1,
        "penalty": 6
      },
      "expect": {
        "penalty": 225,
        "earned": 36.74809400436851,
        "back": 9811.748094004368,
        "principalLost": 188.2519059956315
      },
      "source": "hand calculation in content.mdx; 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)"
    },
    {
      "given": {
        "deposit": 25000,
        "apy": 5,
        "term": 60,
        "held": 24,
        "penalty": 12
      },
      "expect": {
        "penalty": 1250,
        "earned": 2562.500000000001,
        "back": 26312.5,
        "maturity": 31907.039062500007
      },
      "source": "hand calculation in content.mdx: 25,000 × 1.05² − 25,000 = 2,562.50; 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)"
    }
  ],
  "sources": [
    "Office of the Comptroller of the Currency, HelpWithMyBank: What are the penalties for withdrawing money early from a CD? https://www.helpwithmybank.gov/help-topics/bank-accounts/certificates-of-deposit/cd-penalties.html (retrieved 2026-10-03)",
    "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)"
  ],
  "related": [
    "cd",
    "cd-ladder",
    "savings"
  ],
  "changelog": []
}