CD Ladder Calculator
Build a CD ladder strategy to balance liquidity with higher yields. Visualize your investment timeline and projected returns.
Build Your CD Ladder
Longer-term CDs typically offer higher rates. The APY increment simulates this rate increase for each additional year.
Total Ladder Value at Maturity
$28,828
From $25,000 investment
Ladder Overview
Your Ladder Rungs
| Term | APY | Invested | Maturity | Date |
|---|---|---|---|---|
| 1 year | 4.00% | $5,000 | $5,204 | Jan 2027 |
| 2 years | 4.25% | $5,000 | $5,443 | Jan 2028 |
| 3 years | 4.50% | $5,000 | $5,721 | Jan 2029 |
| 4 years | 4.75% | $5,000 | $6,044 | Jan 2030 |
| 5 years | 5.00% | $5,000 | $6,417 | Jan 2031 |
How This Calculator Works
This CD ladder calculator helps you plan a staggered investment strategy across multiple CDs with different maturity dates. Enter your total investment amount, choose the number of “rungs” (CDs) in your ladder, and set your expected APY rates to see projected returns and maturity dates.
The calculator divides your investment equally across each rung, with terms increasing by one year per rung (1-year, 2-year, 3-year, etc.). This creates a rolling schedule where one CD matures each year.
What Is a CD Ladder?
A CD ladder is an investment strategy that divides your money across multiple CDs with staggered maturity dates. Instead of locking all your money in a single long-term CD, you spread it across several terms. When the shortest-term CD matures, you can either use the funds or reinvest in a new long-term CD at the end of your ladder.
Benefits of a CD Ladder
- Regular Access to Funds: Unlike a single long-term CD, a ladder gives you periodic access to your money as each rung matures.
- Higher Average Yields: Long-term CDs typically offer higher rates. A ladder captures some of these higher rates while maintaining liquidity.
- Rate Flexibility: When rates rise, maturing rungs can be reinvested at new, higher rates. When rates fall, your longer-term rungs continue earning the higher locked-in rate.
- Reduced Interest Rate Risk: By spreading investments across terms, you're not betting everything on today's rates.
How to Build a CD Ladder
- Determine Your Total Investment: Decide how much you want to invest in CDs overall.
- Choose the Number of Rungs: A 5-rung ladder (1 to 5 years) is common, but you can customize based on your needs.
- Divide Your Money Evenly: Split your investment equally across each rung.
- Shop for the Best Rates: Compare rates from multiple banks for each term length.
- Reinvest Maturing Rungs: When your shortest CD matures, reinvest it in a new long-term CD at the end of your ladder.
Tips for Success
- • Set calendar reminders before each CD matures to avoid auto-renewal at lower rates
- • Consider keeping some savings liquid outside your ladder for emergencies
- • Online banks often offer higher rates—include them in your rate shopping
- • Review your ladder strategy annually and adjust rung timing if needed
- • For larger investments, spread across multiple banks to maximize FDIC coverage
Important Disclaimer
This calculator provides estimates for educational purposes only. Actual APY rates vary by bank and change frequently. Early withdrawal penalties may apply if you access funds before maturity. This tool is not financial advice. Consult with a financial advisor for personalized guidance.