CD Early Withdrawal Penalty Calculator
Estimate what you could receive after closing a fixed-rate CD before maturity. Enter the penalty as your bank states it: months, weeks, or days of interest, or a fixed dollar amount.
Bank account terms control the actual penalty. This calculator models a full withdrawal and does not cover partial withdrawals, bonus reclamation, rate changes, fees, taxes, IRA penalties, or exceptions and waivers.
Estimate for a full withdrawal after month 6. Bank calculations may use the nominal rate, actual days, or other disclosed rules.
| Original deposit | $10,000.00 |
|---|---|
| Modeled interest through withdrawal | $222.52 |
| Modeled balance before penalty | $10,222.52 |
| Applied early-withdrawal penalty | −$110.65 |
| Estimated withdrawal proceeds | $10,111.87 |
| Estimated value if held to maturity | $10,450.00 |
| Difference versus holding to maturity | $338.13 |
Modeled interest first covers the full stated penalty at month 3.
Show the penalty math
This is SaverGrid's equivalent-APY estimate. Use the amount supplied by your bank when its disclosure uses a different formula.
How the estimate works
SaverGrid first estimates the CD balance at the withdrawal month. For a penalty stated in months, weeks, or days of interest, it applies the APY-equivalent growth for that penalty period to the original deposit. A fixed-dollar penalty is subtracted directly.
Your bank may use its nominal interest rate, actual calendar days, or another method in the account agreement. Regulation DD requires time-account disclosures to state whether an early-withdrawal penalty may apply, how it is calculated, and the conditions for assessing it. Copy the terms from that disclosure and confirm the payoff amount with the bank before withdrawing.
Reading the results
- Withdrawal proceeds are the modeled balance minus the applied penalty.
- Principal loss appears when the penalty exceeds modeled interest earned.
- Difference versus maturity includes both the penalty and modeled future interest not earned after withdrawal. It does not account for what you might earn after moving the money elsewhere.
See the methodology for the complete formulas, limitations, and regulatory source.
Frequently asked questions
Can a CD early-withdrawal penalty reduce principal?
It can if the account agreement allows a penalty larger than the interest earned before withdrawal. Select the earned-interest cap only when the bank’s disclosure says that limit applies.
Why can the bank’s penalty differ from this estimate?
Banks may calculate a stated number of days or months of interest using the nominal interest rate, actual days, a fixed convention, or another disclosed method. SaverGrid uses an equivalent-APY estimate.
What does the break-even month mean?
It is the first modeled month when accumulated CD interest is enough to cover the full stated penalty. It does not mean withdrawing is better than holding the CD to maturity.
Does this include taxes or IRA penalties?
No. Results are pre-tax and do not include separate tax consequences or penalties that may apply to retirement accounts.