CD Ladder Calculator
Build a CD ladder and see each rung APY, maturity value, and your blended return.
What is a CD Ladder Calculator?
A CD ladder calculator helps you build and analyze a certificate of deposit ladder strategy. By spreading your investment across multiple CDs with staggered maturity dates, you can earn higher long-term rates while maintaining regular access to a portion of your money. Use the CD Calculator to evaluate individual CD returns for each rung of your ladder.
Our calculator shows each rung's deposit amount, APY, maturity value, and interest earned, along with your blended average APY and total portfolio return.
Why Build a CD Ladder?
A CD ladder offers several advantages over a single CD. You get regular liquidity as one rung matures each period, a higher average yield by including longer-term CDs, and protection against rate changes since you are not locking in all your money at one rate. The CD Rate Calculator helps you understand how different APYs affect each rung's earnings.
The APY step feature lets you model a realistic yield curve where longer-term CDs pay progressively higher rates. This reflects the typical market where banks offer higher rates for longer commitments.
How to Maintain a CD Ladder
To keep your ladder running, reinvest each maturing CD into a new CD at the longest term of your ladder. After the initial setup period, every rung will be a long-term CD, yet one will mature each period, giving you long-term rates with short-term access.
Frequently Asked Questions
What is a CD ladder?
A CD ladder is a strategy where you split your investment across multiple CDs with different maturity dates. For example, a 5-rung ladder might have CDs maturing in 1, 2, 3, 4, and 5 years, providing both higher yields and regular access to funds.
How does a CD ladder calculator work?
It divides your total investment equally across the number of rungs you specify. Each rung earns interest at its own APY for its term length. The calculator shows each rung's deposit, interest, maturity value, and the blended average APY.
Is a CD ladder better than one CD?
A CD ladder is generally better than a single CD because it offers a higher blended yield from longer-term CDs while keeping a portion of your money accessible each year as shorter-term CDs mature. Before starting a ladder, run the numbers through the CD Early Withdrawal Penalty Calculator to understand the cost if you need to access funds before maturity.
How do I keep a CD ladder going?
When each CD matures, reinvest it into a new CD at the longest term in your ladder. This maintains the ladder structure and ensures you always have a CD maturing each period.
How many rungs should a CD ladder have?
A common CD ladder has 5 rungs spanning 1 to 5 years. However, you can customize the number of rungs and term lengths based on your liquidity needs and the yield curve. More rungs provide greater diversification.
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