# Find my CD early withdrawal penalty

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.

- Page: https://www.acalculator.org/finance/cd-early-withdrawal-penalty-calculator
- JSON spec: https://www.acalculator.org/finance/cd-early-withdrawal-penalty-calculator.json
- Version: 8683b5fe0ad5

## Default answer

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.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| deposit | Amount in the CD | The amount you deposited in the CD. |
| apy | APY | The CD’s annual percentage yield. |
| term | CD term (months) | The CD’s full term in months. |
| held | Months held so far | How many months since you opened the CD. It must be less than the term. |
| penalty | Penalty: months of interest | The penalty in your account agreement, as months of interest (for example 3, 6 or 12). |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| penalty | Early withdrawal penalty | Deposit × APY × penalty months ÷ 12: that many months of interest on the deposit. |
| earned | Interest earned so far | Deposit × ((1 + APY)^(months held ÷ 12) − 1). |
| back | You get back | Deposit + interest so far − penalty. |
| kept | Interest kept after the penalty | Interest so far − penalty. Negative means the penalty takes some of your deposit. |
| principalLost | Deposit lost to the penalty | The part of the penalty the interest does not cover, or $0. |
| maturity | Balance at maturity instead | Deposit × (1 + APY)^(term ÷ 12) if you wait for the full term. |
| wait | Gain from waiting | Balance at maturity − what you get back now. |

## 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 Some banks use the interest rate instead of the APY, count days, or charge on the amount withdrawn only; check your account agreement.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.

## Worked examples

1. deposit = $10,000.00, apy = 4.5%, term = 12, held = 6, penalty = 3 gives penalty = $112.50, earned = $222.52, back = $10,110.02, principalLost = $0.00, maturity = $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. deposit = $10,000.00, apy = 4.5%, term = 12, held = 1, penalty = 6 gives penalty = $225.00, earned = $36.75, back = $9,811.75, principalLost = $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. deposit = $25,000.00, apy = 5%, term = 60, held = 24, penalty = 12 gives penalty = $1,250.00, earned = $2,562.50, back = $26,312.50, maturity = $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).

## FAQ

### 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.

## 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)