CD Ladder Calculator
Split a lump sum into a CD ladder with staggered maturities, see each rung’s maturity value, and the blended return of the whole ladder.
How it works
Per rung = total ÷ rungs · Rung value = per rung × (1 + APY)^term years · Ladder value = Σ rung values
A CD ladder divides your money into equal rungs with staggered maturities — one CD coming due each year — so a portion is always about to become available while the rest keeps earning. When each rung matures you can either take the cash or roll it into a new longest-term CD, which usually carries the highest rate, keeping the ladder rolling. This blends the higher yields of long CDs with the regular liquidity of short ones, and softens the risk of locking everything in just before rates rise. This model applies one APY to every rung; in practice longer terms often pay a bit more.
Worked example
A $25,000, five-rung ladder puts $5,000 into 1- through 5-year CDs at 4.3% APY. The one-year rung matures at $5,215, the five-year at about $6,173, and the whole ladder is worth roughly $28,050 if every rung is held to maturity — about $3,050 of interest.
Frequently asked questions
What is a CD ladder?
It is a set of certificates of deposit with staggered maturity dates — for example equal amounts maturing in 1, 2, 3, 4 and 5 years. As each matures you reinvest it at the longest rung, so you always have both access to some cash and exposure to higher long-term rates.
Why ladder instead of one long CD?
A single long CD locks up all your money and pays an early-withdrawal penalty if you need it sooner. A ladder keeps part of your money maturing regularly, giving liquidity and letting you capture rising rates as rungs roll over.
What happens when a rung matures?
You can withdraw the cash or roll it into a new CD at the longest term in your ladder. Rolling maturing rungs into the top term keeps the staggered structure intact year after year.
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Educational estimate, not financial advice.