Home › Calculators › CD Ladder Calculator
CD Ladder Calculator
Plan a CD ladder in seconds. Enter how much you want to invest, how many CDs (rungs) to split it into, how far apart their terms are and the APY for each, and get a maturity schedule with dates, the blended yield, interest earned by year and what happens when you roll maturing CDs into new long-term ones.
Last updated:
$
1 to 12
One APY per rung, separated by commas or new lines. If you list fewer, the last one is repeated.
years
Horizon for rolling over and interest by year
%
Rate you expect when rolling over (defaults to today's longest APY)
Enter your values to see the result.
Advertisement
Advertisement
How to use the CD Ladder Calculator
- Enter the total you want to put into CDs.
- Choose the number of rungs and the spacing, for example 5 rungs every 12 months for a classic 5-year ladder.
- Enter the APY of each CD, shortest term first.
- Decide on rollover: reinvest maturing CDs into new longest-term CDs, and set the rate you expect.
- Press Build ladder to see the schedule, blended yield and interest by year.
How the CD ladder is calculated
- Deposit per rung = total ÷ number of rungs.
- Term of rung k = k × spacing (for 12-month spacing: 12, 24, 36… months).
- Maturity value = deposit × (1 + APY)months ÷ 12. APY already includes compounding, so the bank's compounding frequency doesn't change the result.
- Blended APY = average of the rung APYs (equal deposits).
- Rollover: when a CD matures, its full value is reinvested in a new CD with the ladder's longest term at the rollover APY.
- Interest by year is the growth of every CD within each 12-month window from the start date.
Example: a $50,000 five-year ladder
| Rung | Term | Deposit | APY | Interest to maturity | Maturity value |
|---|---|---|---|---|---|
| 1 | 1 year | $10,000 | 4.10% | $410.00 | $10,410.00 |
| 2 | 2 years | $10,000 | 3.95% | $805.60 | $10,805.60 |
| 3 | 3 years | $10,000 | 3.85% | $1,200.04 | $11,200.04 |
| 4 | 4 years | $10,000 | 3.80% | $1,608.86 | $11,608.86 |
| 5 | 5 years | $10,000 | 3.75% | $2,021.00 | $12,021.00 |
The APYs are an illustration, not current offers. Blended APY: 3.89%.
CD ladder tips
- Match the spacing to your needs: 3- or 6-month spacing gives frequent access, 12-month spacing usually earns more.
- Compare rates across banks: the best APY for each term is often at different institutions.
- Know the penalty: early withdrawal typically costs several months of interest; the ladder is designed so you rarely need to break a CD.
- Consider alternatives: Treasury bills and I bonds can be laddered too, with different tax treatment.
Frequently asked questions
What is a CD ladder?
A CD ladder splits your savings across several certificates of deposit with staggered maturity dates, such as 1, 2, 3, 4 and 5 years. One CD matures at regular intervals, giving you access to part of your money while the rest earns longer-term rates.
How do you build a 5-year CD ladder?
Divide your money into five equal parts and buy 1, 2, 3, 4 and 5-year CDs. Each year when a CD matures, reinvest it in a new 5-year CD. After four years all of your CDs are 5-year CDs, and one still matures every year.
How is the blended yield calculated?
With equal amounts in each rung, the blended APY is the simple average of the rungs' APYs. For 4.10%, 3.95%, 3.85%, 3.80% and 3.75% it is 19.45 ÷ 5 = 3.89%.
How is CD interest calculated?
Using the APY, a CD's value after t years is deposit × (1 + APY)^t. A $10,000 2-year CD at 3.95% APY grows to $10,000 × 1.0395² ≈ $10,805.60, or $805.60 of interest.
Is a CD ladder better than one long CD?
A single long CD may earn a little more when long-term rates are higher, but locks all of your money up. A ladder gives you regular access to cash without early-withdrawal penalties and lets you reinvest at new rates if rates rise.
What happens when rates fall?
Your existing CDs keep their rates until they mature, which protects part of your income. Rungs that mature are reinvested at the new lower rate, so the ladder's yield adjusts gradually instead of all at once.
Are CDs insured?
CDs at FDIC-insured banks or NCUA-insured credit unions are insured up to $250,000 per depositor, per institution, per ownership category. Large ladders are sometimes spread across several banks to stay within the limit.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.
Related tools
CD CalculatorFind a CD's maturity value, interest earned, APY vs APR and early-withdrawal penalty.APY CalculatorTurn an interest rate into APY and project savings growth with monthly deposits.I Bond CalculatorSeries I savings bond value with fixed and inflation rates by period and early penalty.Treasury Bill CalculatorT-bill price, discount rate, investment rate (bond equivalent yield) and interest earned.EMI CalculatorMonthly EMI, total interest and month-by-month schedule, reducing or flat rate.SIP CalculatorMaturity value, invested amount and returns of a monthly SIP, with optional annual step-up.Compound Interest CalculatorSee how savings and investments grow over time.401(k) CalculatorProject your 401(k) balance with employer match and growth.Retirement CalculatorProject retirement savings and see your shortfall or surplus.Savings Goal CalculatorMonthly deposit needed to reach a savings goal by a deadline.Inflation CalculatorValue of a dollar between any two years using US CPI data.CAGR CalculatorCompound annual growth rate, or solve for a target end value.FIRE CalculatorFind your FIRE number, years to financial independence and Coast FIRE target.Simple Interest CalculatorCalculate simple interest and final amount, or solve for principal, rate or time.ROI CalculatorWork out ROI and annualized ROI, and compare up to three investments side by side.Investment Return CalculatorProject investment growth with monthly contributions, nominal vs real after inflation.Dividend CalculatorProject dividend income with yield, dividend growth and DRIP reinvestment over time.Net Worth CalculatorList assets and debts by category to get your net worth, debt ratio, donut charts and history.Credit Card Interest CalculatorSee how long minimum payments take, the total interest and how much a fixed payment saves.EOQ CalculatorEconomic order quantity, orders per year, reorder point, safety stock and a total cost curve.Rental Yield CalculatorCalculate gross and net rental yield for a buy-to-let or rental property.Roth IRA CalculatorProject your Roth IRA balance at retirement with contribution limits, catch-up and growth.Present Value CalculatorFind what a future sum or a series of payments is worth today at a discount rate.Future Value CalculatorCalculate the future value of savings with compounding, regular payments and payment timing.NPV CalculatorCalculate net present value, PV table, profitability index and payback from cash flows.IRR CalculatorFind the internal rate of return of cash flows, with an NPV profile chart and optional MIRR.Rule of 72 CalculatorEstimate how long money takes to double with the rule of 72, 70 and 69.3 vs. the exact answer.Annuity CalculatorCalculate annuity payouts from a lump sum, or how an annuity grows with regular contributions.Savings CalculatorSee how savings grow with an initial deposit, monthly deposits and compound interest.Interest Rate CalculatorSolve a loan's interest rate (APR) from the amount, payment and term using Newton's method.Yield to Maturity CalculatorFind a bond's yield to maturity, current yield and yield to call from its price and coupon.Bond Price CalculatorPrice a bond from its coupon, yield and term, with premium or discount and a cash flow table.Stock Average CalculatorAverage cost of several stock buys, plus how many shares to buy to reach a target average.Position Size CalculatorHow many shares or units to trade so a stop-loss risks only a set share of your account.EPS CalculatorBasic and diluted earnings per share from net income, preferred dividends and share count.CAPM CalculatorExpected return from the risk-free rate, beta and market return using the CAPM formula.Effective Annual Rate CalculatorConvert a nominal rate to the effective annual rate (EAR / APY) for any compounding, or back.Dividend Reinvestment CalculatorProject a DRIP: portfolio value, shares and income with and without reinvesting dividends.Lump Sum vs Payments CalculatorCompare a lump sum with periodic payments: present value, best option and break-even rate.Millionaire CalculatorSee when your savings will reach $1 million or any goal, with inflation adjustment.Opportunity Cost CalculatorCompare buying now with investing the money: see the future value you give up.Portfolio Rebalancing CalculatorBuy and sell amounts to bring each holding back to its target allocation.PPF CalculatorPPF maturity amount and interest for 15 years or with 5-year extensions, year by year.Recurring Deposit CalculatorRD maturity value and interest with quarterly compounding and a monthly breakdown.Real Rate of Return CalculatorInflation-adjusted and after-tax real return using the Fisher equation.Risk Reward Ratio CalculatorRisk, reward, R:R ratio and break-even win rate from entry, stop loss and take profit.Sharpe Ratio CalculatorSharpe and Sortino ratios from a return and volatility, or from a list of returns.Employee Stock Option CalculatorVested options, exercise cost, intrinsic value and potential gain from your grant.Stock Split CalculatorNew share count, price and cost basis after a forward or reverse stock split.SWP CalculatorSystematic withdrawal plan: yearly balance, total withdrawn and when the corpus runs out.Traditional vs Roth IRA CalculatorCompare the after-tax value of a Traditional and a Roth IRA and see which wins and by how much.XIRR CalculatorAnnualized return (XIRR) for investments and withdrawals on irregular dates.Crypto ConverterConvert Bitcoin, Ethereum and top coins to USD, EUR and each other with live prices.Dividend Yield CalculatorFind a stock's dividend yield, yield on cost and the income your shares pay each year.Financial Calculator (TVM)BA II Plus-style TVM solver: find N, I/Y, PV, PMT or FV, with BGN/END and amortization.Traditional IRA CalculatorProject a traditional IRA to retirement and compare its after-tax value with a taxable account.Roth Conversion CalculatorShould you convert a traditional IRA to Roth? Compare after-tax values and find the break-even.S&P 500 Return CalculatorHistorical S&P 500 return between any two years, with dividends, inflation and CAGR.AGI CalculatorCalculate adjusted gross income from income sources and adjustments, plus MAGI for Roth and ACA.Asset Allocation CalculatorSuggested stock, bond and cash mix by age, risk tolerance and time horizon, with dollar amounts.Convertible Note & SAFE CalculatorSAFE and convertible note conversion: cap, discount and interest to shares and ownership %.Cost of Raising a Child CalculatorYearly and total cost of raising a child to 18 by category, income level and inflation.Crypto Mining CalculatorMining profit per day and month from hashrate, power, electricity cost, pool fee and difficulty.Crypto Staking CalculatorEstimate staking rewards in coins and dollars from APR or APY, compounding, validator fee and price.Dividend Income Goal CalculatorHow much to invest to earn a monthly dividend income and how many years it takes.403(b) CalculatorProject your 403(b): match, raises, returns, 50+ and 15-year catch-ups, balance at retirement.Interest Coverage Ratio CalculatorTimes interest earned (EBIT ÷ interest), EBITDA coverage, interpretation and stress test.Loss Recovery CalculatorSee the percent gain needed to recover an investment loss and how many years it may take.