Treasury Ladder Yield Calculator
Build a Treasury ladder across several maturities and see the blended average yield and the annual interest income it produces.
How it works
Per rung = total ÷ rungs · Rung yield = linear from short to long · Blended yield = total income ÷ total invested
A Treasury ladder splits your cash across several maturities so that a portion matures each period and can be reinvested at prevailing rates. That staggering smooths out interest-rate risk: you are never forced to reinvest everything at a single low point, and you always have money coming due for liquidity. The blended yield here assumes each rung is equal-sized and rates step evenly between the shortest and longest maturity.
Worked example
Investing $50,000 across five equal $10,000 rungs yielding 4.8%, 4.65%, 4.5%, 4.35% and 4.2% earns 480 + 465 + 450 + 435 + 420 = $2,250 a year, a blended yield of 2,250 ÷ 50,000 = 4.5%.
Frequently asked questions
Why build a ladder instead of one bond?
A ladder gives you regular maturities for liquidity and reinvestment, so you avoid locking every dollar into a single rate. When rates rise you reinvest maturing rungs at the higher yield; when they fall your longer rungs still carry the old higher rate.
Does this account for reinvestment?
No — it shows the blended yield and income of the ladder as initially built. As each rung matures you would reinvest at whatever rate is available then, which changes future income.
Are Treasury yields taxed?
Interest on U.S. Treasuries is subject to federal income tax but is exempt from state and local income tax, which can make their after-tax yield more attractive than it first appears.
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Educational estimate, not investment advice. Options and margin involve substantial risk.