CD Ladder Calculator
Split savings across staggered CDs and see the total maturity value, interest earned and a rung-by-rung breakdown.
How it works
Each rung k: value = (total ÷ rungs) × (1 + APY)^k · Total = sum of all rungs
A CD ladder divides your money across certificates of deposit that mature in successive years — one at 1 year, one at 2, and so on. As each rung matures you get access to that cash (or roll it into a new long rung), so you are never locked in for long yet still capture the higher rates that longer terms usually pay. It balances liquidity against yield: money is available every year, but most of it keeps earning. This model assumes a flat APY across rungs; in practice longer rungs often pay a bit more.
Worked example
Ladder $25,000 into 5 rungs of $5,000 maturing in years 1 through 5 at 4.5% APY. The 1-year rung grows to $5,225, the 5-year rung to about $6,231, and the whole ladder reaches roughly $28,584 at full maturity — about $3,584 of interest, with a rung freeing up each year.
Frequently asked questions
Why build a CD ladder instead of one big CD?
A ladder keeps part of your money accessible every year instead of locking it all away, and it smooths out interest-rate risk — you are not betting everything on one rate at one moment. As rates change, each maturing rung can be reinvested at the going rate.
What happens when a rung matures?
You can take the cash if you need it, or reinvest it into a new long-term rung at the top of the ladder. Rolling maturing rungs into fresh long rungs keeps the ladder going and captures current rates.
Are CDs safe?
CDs at FDIC-insured banks (or NCUA-insured credit unions) are protected up to the insurance limits, making them very low risk. The main trade-off is early-withdrawal penalties if you break a CD before it matures — which laddering is designed to avoid.
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This is an educational estimate, not financial advice. Lenders use their own rounding, fees and terms — confirm exact figures with your lender or a licensed advisor.