CD Early Withdrawal Penalty Calculator 2026

Break a $10,000 Sallie Mae 1 year CD at 4.60% after 6 months and the penalty is $110.90, leaving you $10,116.51. Pick any of 53 banks with verified penalty rules, or enter your own.

Updated Nov 7, 2026

Penalty Terms

Bank

Early-withdrawal rule: 90 days of interest, capped at the interest you have earned. Verified from Navy Federal's disclosure, checked 2026-11-05.

Penalty is the lesser of the stated days of dividends or all dividends earned, so it does not reach your principal. Official disclosure. Full-balance, pre-tax estimate; month 0 does not model special first-week restrictions.

CD Term

Deposit

$0$250K

CD APY

APY is the tracked $10,000-tier standard snapshot for this term, not a live quote. Edit it to match your existing CD and balance tier.

Withdraw After

01 yr (maturity)

6 months after opening

Early Withdrawal Penalty

$97.90

90 days of interest

$10,000 at 4.05% APY, withdrawn after 6 months

Interest Earned So Far$200.49

Penalty$97.90

You Walk Away With$10,102.59

Effective APY After Penalty

2.06%

Interest You Keep

$102.59

Principal Lost

None

Penalty Break-Even

Month 3

Break It for a Better Rate?

Today's new-CD APY

Auto: best tracked 6-month rate, 4.35% (Popular Direct), at the $10,000 tier. Verify eligibility.

Breaking needs a new rate of at least 6.08% for the remaining 6 months to match holding to maturity. At 4.35%, switching leaves you $85.02 behind at the original maturity date.

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The penalty month by month

Interest, penalty phases and caps are recalculated at each withdrawal month. Maturity is penalty-free.

Withdraw after	Interest earned	Penalty	You get	Effective APY
0 months	$0.00	$0.00	$10,000.00	—
1 month	$33.14	$33.14	$10,000.00	0.00%
2 months	$66.39	$66.39	$10,000.00	0.00%
3 months	$99.75	$97.90	$10,001.85	0.07%
4 months	$133.22	$97.90	$10,035.32	1.06%
5 months	$166.80	$97.90	$10,068.90	1.66%
6 months	$200.49	$97.90	$10,102.59	2.06%
7 months	$234.29	$97.90	$10,136.39	2.35%
8 months	$268.21	$97.90	$10,170.31	2.57%
9 months	$302.24	$97.90	$10,204.34	2.73%
10 months	$336.38	$97.90	$10,238.48	2.87%
11 months	$370.63	$97.90	$10,272.73	2.98%
1 year (maturity)	$405.00	None	$10,405.00	4.05%

Early withdrawal penalty at 47 banks

The same move at every bank we track with a verified penalty rule: $10,000 in a 12-month CD at its tracked $10,000-tier rate (relationship rates are labeled), withdrawn after 6 months. Rates checked Nov 7, 2026; penalty rules checked against each bank's disclosure, most recently Nov 7, 2026.

CD early withdrawal penalty by bank: $10,000 in a 12-month CD, withdrawn after 6 months
Bank	12-mo APY	Penalty rule	Penalty	You get
Salem Five	4.50%	4% of the amount withdrawn	$400.00 ⚠	$9,822.52
Popular Direct	4.60%	270 days of interest	$332.70 ⚠	$9,894.71
Poppy Bank	4.25%	3% of the amount withdrawn	$300.00 ⚠	$9,910.29
American Express	3.75%	270 days of interest	$272.34 ⚠	$9,913.44
Flagstar	4.30%	180 days of interest	$207.63	$10,005.10
TD Bank	4.15%	6 months of interest	$203.32	$10,002.07
First Internet Bank	4.00%	180 days of interest	$193.43	$10,004.61
Fifth Third	3.70%	2% of the amount withdrawn (capped at interest earned)	$183.32	$10,000.00
PenFed	3.60%	365 days of interest (capped at interest earned)	$178.41	$10,000.00
WSFS	2.75%	6 months of interest	$135.65	$10,000.92
Sallie Mae	4.60%	90 days of interest	$110.90	$10,116.51
E*TRADE	4.55%	90 days of interest	$109.72	$10,115.25
Capital One	4.45%	3 months of interest	$108.85	$10,111.23
Barclays	4.50%	90 days of interest	$108.54	$10,113.98
Live Oak Bank	4.50%	90 days of interest	$108.54	$10,113.98
Marcus	4.40%	90 days of interest	$106.18	$10,111.45
City National	4.39%	90 days of interest	$105.94	$10,111.20
Bask Bank	4.35%	90 days of interest	$105.00	$10,110.19
Wright-Patt	4.25%	3 months of interest	$104.06	$10,106.23
Synchrony	4.30%	90 days of interest	$103.82	$10,108.92
Alliant	4.30%	90 days of interest (capped at interest earned)	$103.82	$10,108.92
Citi	4.25%	90 days of interest	$102.63	$10,107.65
First Horizon	0.10%	1% of the amount withdrawn	$100.00 ⚠	$9,905.00
CIT Bank	4.00%	3 months of interest	$98.06	$10,099.98
Navy Federal	4.05%	90 days of interest (capped at interest earned)	$97.90	$10,102.59
SECU	4.00%	90 days of interest (capped at interest earned)	$96.71	$10,101.33
Forbright Bank	3.65%	90 days of interest	$88.40	$10,092.46
Unitus	3.65%	90 days of interest (capped at interest earned)	$88.40	$10,092.46
EverBank	3.50%	91 days of interest	$85.77	$10,087.72
U.S. Bank	3.40%	90 days of interest (capped at interest earned)	$82.45	$10,086.13
Zions Bank	3.05%	90 days of interest	$74.08	$10,077.27
WaFd Bank	3.00%	90 days of interest	$72.89	$10,076.00
Ally	4.50%	60 days of interest	$72.36	$10,150.16
America First	3.90%	60 days of interest	$62.89	$10,130.24
First Citizens	2.00%	3 months of interest	$49.51	$10,050.00
United Bank	2.00%	3 months of interest	$49.51	$10,050.00
Associated Bank	1.00%	181 days of interest	$49.34	$10,000.53
USAA	1.80%	90 days of interest	$43.99	$10,045.61
Wells Fargo	1.50%	3 months of interest	$37.22	$10,037.50
CIBC Agility	4.50%	30 days of interest	$36.18	$10,186.34
Fulton Bank	0.70%	182 days of interest	$34.78	$10,000.16
Open Bank	3.75%	30 days of interest	$30.26	$10,155.51
Chase	0.50% (relationship)	180 days of interest (capped at interest earned)	$24.60	$10,000.37
Huntington	0.25%	180 days of interest	$12.31	$10,000.18
ESL	0.12%	90 days of interest	$2.96	$10,003.04
PNC	0.02%	6 months of interest	$1.00	$10,000.00
Webster Bank	0.01%	3 months of interest	$0.25	$10,000.25

⚠ means the penalty reaches your principal at this withdrawal date. Each bank's full penalty schedule is on its CD rates page.

The penalty by how long you have held

Interest, penalty phases and caps are recalculated at every withdrawal date. The Sallie Mae 1 year CD at 4.60%, withdrawn at different points:

$10,000 Sallie Mae 1 year CD at 4.60%: penalty and payout by withdrawal month
Withdraw after	Interest earned	Penalty	You get	Effective APY
1 month	$37.55	$110.90	$9,926.65	-8.46%
3 months	$113.07	$110.90	$10,002.17	0.09%
6 months	$227.41	$110.90	$10,116.51	2.34%
9 months	$343.05	$110.90	$10,232.15	3.11%
12 months (maturity)	$460.00	None	$10,460.00	4.60%

From month 3 the interest beats the penalty, so an early withdrawal still leaves you ahead. Before that, breaking costs principal.

Should you break it for a better rate?

Paying the penalty can be worth it when today's rates are well above your CD's. The break-even test: reinvest the payout at the new rate until the old CD's maturity date, and see which side finishes ahead. For the Sallie Mae CD at 4.60%, with the best tracked rate for the remaining term at 4.35% (Popular Direct):

Breaking the Sallie Mae 1 year CD at 4.60% to switch to 4.35%
Break after	Payout after penalty	New APY needed to break even	New rate / term	Switch value	Verdict
3 months	$10,002.17	6.15%	4.50% / 9 months	$10,337.88	$122.12 behind
6 months	$10,116.51	6.91%	4.35% / 6 months	$10,334.21	$125.79 behind
9 months	$10,232.15	9.21%	4.30% / 3 months	$10,340.42	$119.58 behind

The longer you have held, the less remaining term there is to earn the penalty back, so the bar for switching rises. This assumes the new rate is available for the whole remaining term.

The penalty by deposit size

Months-of-interest penalties scale with the deposit. The same Sallie Mae 1 year CD at 4.60%, broken after 6 months:

Early withdrawal penalty on the Sallie Mae 1 year CD at 4.60%, withdrawn after 6 months
Deposit	Interest earned	Penalty	You get	Interest kept
$5,000	$113.71	$55.45	$5,058.26	$58.26
$10,000	$227.41	$110.90	$10,116.51	$116.51
$25,000	$568.54	$277.25	$25,291.29	$291.29
$50,000	$1,137.07	$554.50	$50,582.57	$582.57
$100,000	$2,274.14	$1,109.00	$101,165.14	$1,165.14

How CD early withdrawal penalties work

Months or days of interest on the amount withdrawn is the most common form: charge simple interest for the stated period at the CD's rate. Because it ignores how long you have actually held, breaking early hurts most.
Caps matter. 8 of the 53 banks we track cap the penalty at the interest you have earned, so you never lose principal. At the rest, breaking in the first months can cost more than you have earned.
Other structures exist: a percentage of the amount withdrawn, a percentage of the interest the CD would have earned to maturity, a flat fee, or "the greater of" several of these. Bank mode handles these verified rules; custom mode supports the simpler penalty structures and flat fees.
The penalty is on the amount withdrawn. Some banks allow partial withdrawals and charge only on that part; others require closing the CD. Check the disclosure.
It is tax-deductible. The penalty shows in box 2 of your 1099-INT and reduces your income even if you do not itemize.
Grace periods are short. At maturity you typically get 7 to 10 days before an automatic renewal locks the money into a new term, with the penalty back in force.

Early Withdrawal Penalty Formula

Most penalties are stated as months or days of simple interest on the amount withdrawn.

r = 365 × ((1 + APY)^(1/365) − 1)

Example:

Sallie Mae 1 year CD at 4.60% APY

r = 365 × ((1 + 0.0460)^(1/365) − 1)

= 4.50% nominal

Variables:

r - Nominal annual rate, compounded daily

APY - The CD's annual percentage yield, as a decimal

Penalty = P × r × (months ÷ 12)

Example:

$10,000 deposit, 90 days of interest

10,000 × 0.0450 × penalty period

= $110.90 penalty

Variables:

P - Principal withdrawn

months - Penalty period stated in the disclosure

Payout = P + Interest earned − Penalty

Example:

Withdrawn after 6 months

10,000 + 227.41 − 110.90

= $10,116.51 (2.34% effective APY)

Variables:

Interest earned - P × ((1 + APY)^(months held ÷ 12) − 1)

These formulas provide the mathematical foundation for the calculations. Actual results may vary based on rounding, compounding frequency, and specific lender policies.

CD early withdrawal penalty FAQs

Quick answers on penalty amounts, principal loss, break-even points and taxes.

How much is the early withdrawal penalty on a CD?

It depends on the bank and the term: typically 3 months of interest for terms under a year, 6 months for 1 to 4-year terms, and 12 months or more for longer CDs. Real example: Sallie Mae charges 90 days of interest on a 1 year CD, so breaking $10,000 at 4.60% after 6 months costs $110.90. The table above shows the same scenario for 47 banks.

Can a CD early withdrawal penalty take my principal?

Yes, at banks that do not cap the penalty at interest earned. Break the Sallie Mae CD above after just 1 month and the $110.90 penalty exceeds the $37.55 you have earned, so $73.35 comes out of your deposit. 8 of the 53 banks we track cap the penalty at the interest you have earned, so you can never leave with less than you deposited. The calculator flags any principal loss.

Is the CD early withdrawal penalty tax deductible?

Yes. The penalty appears in box 2 of your Form 1099-INT and you can deduct it from your income even if you do not itemize, under IRS Publication 550's penalty-on-early-withdrawal rule. You still report the full interest in box 1 as income, so the deduction just keeps you from paying tax on interest you never kept. CDs in an IRA follow IRA rules instead.

When does breaking a CD for a better rate make sense?

When the new rate is high enough to earn the penalty back before the old CD would have matured. For the Sallie Mae 1 year CD above, broken after 6 months, the new CD must pay at least 6.91% for the remaining 6 months to break even; the best tracked rate today is 4.35%, so switching leaves you $125.79 behind. Run your own numbers above.

What is the earliest I can withdraw without losing money?

For the Sallie Mae example, month 3: that is when the interest earned first exceeds the penalty, so you walk away with more than you deposited even after paying it. Before that the penalty eats some principal. Every bank's point differs; the calculator shows yours month by month.

Do I pay a penalty if I withdraw at maturity?

No. Once the CD matures you can withdraw everything penalty-free, usually within a grace period of about 7 to 10 days. Miss it and most banks auto-renew the CD at their then-current rate for the same term, and the early withdrawal penalty applies to the new term. Set a calendar reminder for the maturity date.

How is a penalty of "6 months of interest" calculated?

As simple interest on the amount you withdraw, at the CD's interest rate: principal × rate × 6 ÷ 12, where the rate is the nominal rate behind the APY (a 4.60% APY is a 4.50% nominal rate compounded daily). On $10,000 a six-month penalty is $224.88, before any cap or fee. Some banks instead charge a percentage of principal, a percentage of remaining interest, a flat fee, or whichever of several penalties is greatest, and a few cap the total at the interest you have earned.

What is a no-penalty CD?

A CD that lets you withdraw the full balance early (usually after the first 6 or 7 days) with no penalty, in exchange for a lower APY than the bank's locked CDs. If you think you might need the money, compare the no-penalty rate against the locked CD's effective APY after a possible penalty, which the calculator above shows; the locked CD sometimes wins even if you break it.

Sources and how we calculate

Penalty rules come from each bank's official disclosure, verified for 53 banks, most recently Nov 7, 2026; bank rates were checked Nov 7, 2026. Months-of-interest penalties are charged as simple interest at the nominal rate behind the APY, the same math the bank pages on this site use; payouts grow at the APY, matching each bank's maturity promise. The break-and-switch test assumes the new rate is available for the whole remaining term. Results are estimates, not an offer from any bank. Plan around penalties with the CD ladder calculator, which frees up cash every year without breaking a CD.

Figures last checked on Nov 7, 2026. Read our calculation methodology for data sources and update schedule.

CD Early Withdrawal Penalty Calculator 2026

The penalty month by month

Early withdrawal penalty at 47 banks

The penalty by how long you have held

Should you break it for a better rate?

The penalty by deposit size

How CD early withdrawal penalties work

Early Withdrawal Penalty Formula

Convert APY to the Daily Rate

Example:

Variables:

Charge the Stated Months (or Days) of Interest

Example:

Variables:

Payout and Effective APY

Example:

Variables:

CD early withdrawal penalty FAQs

How much is the early withdrawal penalty on a CD?

Can a CD early withdrawal penalty take my principal?

Is the CD early withdrawal penalty tax deductible?

When does breaking a CD for a better rate make sense?

What is the earliest I can withdraw without losing money?

Do I pay a penalty if I withdraw at maturity?

How is a penalty of "6 months of interest" calculated?

What is a no-penalty CD?

Sources and how we calculate

The penalty month by month

CD Early Withdrawal Penalty Calculator 2026

The penalty month by month

Early withdrawal penalty at 47 banks

The penalty by how long you have held

Should you break it for a better rate?

The penalty by deposit size

How CD early withdrawal penalties work

Early Withdrawal Penalty Formula

1Convert APY to the Daily RatePenalties are charged at the CD's interest rate, not the APY. Convert first.

Convert APY to the Daily Rate

Example:

Variables:

2Charge the Stated Months (or Days) of InterestMultiply the principal by the rate for the penalty period; days use r × days ÷ 365.

Charge the Stated Months (or Days) of Interest

Example:

Variables:

3Payout and Effective APYYou leave with the deposit plus interest earned minus the penalty; some banks cap the penalty at interest earned, others reach principal.

Payout and Effective APY

Example:

Variables:

CD early withdrawal penalty FAQs

How much is the early withdrawal penalty on a CD?

Can a CD early withdrawal penalty take my principal?

Is the CD early withdrawal penalty tax deductible?

When does breaking a CD for a better rate make sense?

What is the earliest I can withdraw without losing money?

Do I pay a penalty if I withdraw at maturity?

How is a penalty of "6 months of interest" calculated?

What is a no-penalty CD?

Sources and how we calculate

The penalty month by month