SavingsTools

CD early withdrawal penalty calculator

Estimate the cost of closing a certificate of deposit (CD) early when the fee is a set number of days of interest.

Your CD and penalty terms

Look for early withdrawal penalties in your CD agreement. Use the balance the agreement specifies, the stated annual interest rate, and the number of days of interest it charges. If the penalty is stated in months, check how your bank counts the days.

The amount your bank uses to calculate the penalty. Check the CD agreement.
Enter the current payout balance before the early withdrawal charge.
Use the stated annual rate from the CD agreement. APY includes compounding.
Enter the number of days in the bank’s penalty formula.

Your estimate

Estimated penalty $98.63
Estimated payout
$10,101.37

Uses simple interest and a 365-day year. Your bank may use a different balance, day count, or penalty formula.

How the penalty is estimated

Worked example

A 90-day penalty on $10,000 at a 4% stated annual rate is $98.63. From a $10,200 balance, that leaves an estimated payout of $10,101.37.

Multiply the balance used for the penalty by the annual interest rate and by the penalty days divided by 365. Subtract the fee from your balance before the fee.

Check your CD agreement for the actual amount. A penalty can consume accrued interest and, depending on the agreement, some principal.

Sources

Related calculators

What to check before withdrawing early

Ask for the withdrawal amount as of a specific date

The amount used to calculate the fee can differ from the balance the institution would pay before the fee. Check both figures and ask how the institution handles accrued but uncredited interest. Use the stated annual interest rate if the agreement specifies simple interest on that balance.

If the terms include a flat minimum, lost bonuses, or another fee, ask for the full payout quote. The calculator estimates a penalty expressed as days of simple interest using a 365-day year.

Compare what you’d receive now with what you’d receive by waiting

Check the penalty and the remaining interest together. If you’re switching for a higher rate, compare both choices through the same date. Use the money you would receive after the fee as the starting balance for the new account.