Because early withdrawal penalties vary depending on the bank and CD term, there isn’t a standard way to calculate early withdrawal fees. Most early withdrawal penalties will equal the amount of a loss of interest or dividends for a certain period of time. A longer CD term will generally have a greater penalty for early withdrawal.
If you need access to your funds before the CD matures, some banks require you to withdraw the entire amount of the account, while others charge a penalty only on the amount of a partial withdrawal. If the early withdrawal penalty exceeds the interest you’ve earned, you’ll lose money on your principal investment.