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In this paper, the performance for DFT-based CP-OFDM system in multipath mobile fading channel is evaluated. It is known that OFDM with the aid of sufficient cyclic prefix (CP) can combat multipath fading in slowly varying channel. But, in rapidly fading channel, the system suffers from intercarrier interference (ICI) resulted from rapidly time variation of the channel. Additionally, when insufficient CP is used, both interblock interference (IBI) and ICI resulted from multipath propagation are induced. In our work, the performance degradation caused by these impairments is analyzed by mathematical derivation and computer simulation, as well. Furthermore, the number of subcarriers and the duration of CP should be carefully designed depending on the corresponding environment. This key tradeoff must be considered in the implementation of an OFDM system and our work could be a reference.