CD Early Withdrawal Penalty Calculator

The standard formula is: penalty = principal × (annual rate ÷ 12) × penalty months. Most banks express their penalty as a number of months' worth of interest — for example, "6 months of interest" — rather than a flat fee.

It varies by CD term and bank, but common patterns are around 90 days (about 3 months) of interest for CDs of 1 year or less, and 6-12 months of interest for longer terms (2-5 years). Always check your specific CD's disclosure — this varies significantly by institution.

Yes — if you withdraw very early (before you've earned enough interest to cover the penalty), the penalty can eat into your original principal, not just your earned interest. This is more likely with CDs that have a long penalty period relative to how long you actually held the CD.

This uses the standard, most common penalty formula, but some banks use slightly different methods (e.g., a flat number of days rather than months, or a minimum dollar penalty). Check your specific CD's account disclosure for the exact terms.

It can be, if the new rate is high enough relative to your remaining time and penalty size — use the reinvestment comparison below. If the extra interest from the new rate over your remaining term outweighs the penalty, breaking and reinvesting comes out ahead; if not, it's better to just wait out the original CD.