CD Early Withdrawal Penalty Calculator
Estimate a certificate-of-deposit early-withdrawal penalty from an entered nominal annual interest rate and penalty period.
Method checked 2026-09-19 · Methods & sources · Examples are estimates, not current offers or quotes.
Your estimate
Fill in the inputs and select Calculate. Results clear when you change an input so you can compare a fresh estimate.
How this calculator works
Calculates earned interest as principal × entered nominal annual rate × months held / 12; it does not convert an APY into a nominal rate.
For a days-based penalty, converts entered days to years using 365 days. For a months-based penalty, converts entered months to years using 12 months.
Calculates the penalty from principal and the selected interest period, then shows any amount above earned interest as principal erosion and subtracts the penalty from estimated proceeds.
Worked example
Worked example: withdrawing $10,000 after 3 months at a 4.80% nominal annual rate earns $120.00 in this simple-interest estimate. A 6-month penalty is $240.00, so $120.00 of the penalty erodes principal.
Common questions
Is APY interchangeable with the rate in this calculator?
No. APY includes compounding; this calculator requires the nominal annual rate stated in your agreement so its simple-interest estimate has a defined basis.
Can an early-withdrawal penalty reduce principal?
It can under some account agreements when the penalty is greater than interest earned. Check your bank’s contract because terms and exceptions vary.