Laddered CD Income Calculator
Build a CD ladder from a lump sum and see the annual interest income, the amount maturing each year, and what a rung is worth.
How it works
Per rung = total ÷ rungs · Annual interest ≈ total · APY · Rung value at maturity = per rung · (1 + APY)^term
A CD ladder splits your money across CDs that mature in successive years, so one rung comes due every year. That gives you regular access to cash and a steady stream of maturing principal without locking everything into a single term. As each short rung matures you typically reinvest it into a new longest rung, which keeps the ladder rolling and captures the higher yields that longer terms usually pay.
Worked example
$50,000 across five rungs is $10,000 each, in 1- through 5-year CDs. At a 4.5% average APY the ladder throws off about $2,250 of interest a year, and $10,000 of principal matures annually that you can spend or roll into a fresh 5-year rung.
Frequently asked questions
Why ladder instead of one long CD?
A ladder balances yield and access. One long CD may pay a bit more but locks up all your cash; a ladder keeps money maturing every year so you are never far from penalty-free access, and it smooths out reinvesting across different rate environments.
What happens when a rung matures?
You choose: take the cash, or reinvest it into a new CD at the longest rung of the ladder. Continually rolling maturing rungs into the top term is what keeps the ladder intact and steadily earning longer-term yields.
Does this assume every rung has the same rate?
Yes — it uses one average APY for simplicity. In reality longer rungs often pay more (or less when the yield curve is inverted). Use the blended rate you expect across the ladder, or build it around the rate you can actually get today.
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Educational estimate, not investment or tax advice.