CD Early Withdrawal Penalty Calculator
See exactly how much an early CD withdrawal costs — penalty amount, net interest, and whether you dip into principal. Enter your balance, APY, months held, and your bank’s penalty schedule.
Early withdrawal penalty by bank
Penalty schedules vary significantly by institution and CD term. The table below is pulled live from our deposit database — the same early-withdrawal figures we verify against each bank’s own disclosure — so it stays in sync with the rest of the site:
| Bank | 6-month CD | 12-month CD | 5-year CD |
|---|---|---|---|
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Penalties are days of interest forfeited. Figures are pulled from our deposits database and reflect the latest verified disclosure; a “—” means we have not yet confirmed that term for that bank. No-penalty CDs charge $0 after the initial 6-day holding period.
When is it worth breaking a CD early?
Breaking a CD early is worth it when the after-penalty net return still exceeds what you would have earned in the alternative — typically a high-yield savings account or money market account. The math depends on three variables: how much of the term you have already held, the penalty size, and the rate differential between your CD and the current best available rate.
The rule of thumb: if you have held the CD for more than half its term, breaking it is usually profitable even after the penalty. If you are in the first quarter of the term and the penalty is 180+ days, you will likely lose money. Use the calculator above to find your exact break-even point.
Example: a $20,000 CD at 4.00% APY with a 180-day penalty, broken after 6 months: you have earned approximately $400 in interest. The penalty costs approximately $400 (180 days at 4.00%). Net interest = $0. You get your principal back but earned nothing. Breaking after 9 months: earned ~$600, penalty ~$400, net ~$200 — worth it if you can deploy the money at a materially better rate.
Can an early withdrawal penalty eat into principal?
Yes. If you break a CD very early in the term — before you have earned enough interest to cover the penalty — the bank deducts the remainder from your principal. The calculator flags this with a warning. This most commonly happens with large penalties (270+ days) on CDs broken in the first few weeks or months.
Example: a $10,000 CD at 4.00% APY with a 270-day penalty, broken after 1 month. Interest earned: ~$33. Penalty: ~$296. The $263 difference comes out of your $10,000 principal — you receive $9,737. Always check the break-even months in the calculator before opening a CD with a large penalty if there is any chance you will need the funds early.
No-penalty CDs: the alternative
If there is any meaningful chance you will need the money before the CD matures, consider a no-penalty CD instead. No-penalty CDs charge $0 for early withdrawal after a brief 6-day holding period. The trade-off is a slightly lower APY — typically 10 to 40 basis points below the equivalent standard CD term.
BMO Alto offers no-penalty CDs across every term from 6 months to 5 years — the only bank that does. See all current options on the no-penalty CD rankings page, or compare full-term rates on best CD rates.
An early withdrawal penalty is charged when you withdraw from a CD before its maturity date. It is expressed as a number of days of interest — typically 60 to 540 days depending on the CD term and institution. The penalty is deducted from your earned interest first, and from principal if the interest earned is insufficient to cover it.
Ally Bank is among the most lenient of the major online banks on short and mid terms, and no-penalty CDs from Ally, Marcus, and BMO Alto charge nothing after the initial 6-day holding period. Capital One and Discover charge 540 days on 5-year CDs — among the highest in the industry. The table above shows the current verified figures for each bank.
Sometimes, if you have held the CD long enough and the alternative rate is meaningfully higher. Use the calculator above to find your exact net return after the penalty. As a rough rule: if you have held more than half the term and the rate differential is 0.50% or more, breaking and reinvesting is usually profitable after the penalty. If you are early in the term or the rate differential is small, it usually is not.
The penalty equals the interest that would have accrued on your principal for the penalty period (e.g., 180 days). Formula: penalty = principal × (1 + APY/365)^penalty_days − principal. This calculator uses daily compounding, which is how most banks calculate it. The result can exceed your earned interest if you break early, in which case it comes out of principal.
No-penalty CDs offer a fixed rate like a standard CD but allow full withdrawal without a penalty after a brief initial holding period (typically 6 to 7 days). They are available at Ally, Marcus, BMO Alto, and several other banks and credit unions. See the no-penalty CD rankings for current rates and options.