Savings & Banking

CD Ladder Calculator

A CD ladder solves the lock-up problem — you split your money across CDs that mature a year apart, so cash frees up regularly while longer rungs earn more. Enter your deposit, the number of rungs, and a rate to see the maturity value of each and the total interest.

Tested against worked examplesHow we verify

Total to deposit

Number of rungs

Interest rate (APR)

One rate for all rungs. Real ladders often earn slightly more on longer terms.

Total value at full maturity

$56,454

If every rung is held to its maturity date.

Total deposited: $50,000
Total interest earned: $6,454
Per rung: $10,000

Each rung

Matures in (yrs)	Deposited	Interest	At maturity
1	$10,000	$407	$10,407
2	$10,000	$831	$10,831
3	$10,000	$1,273	$11,273
4	$10,000	$1,732	$11,732
5	$10,000	$2,210	$12,210

Compare scenariosTry three values of one input

Vary

CD Ladder Calculator results for three values of Total to deposit
Total to deposit
Total value at full maturity	$50,808	$56,454+$5,645	$62,099+$11,291
Total deposited	$45,000	$50,000+$5,000	$55,000+$10,000
Total interest earned	$5,808	$6,454+$645	$7,099+$1,291
Per rung	$9,000	$10,000+$1,000	$11,000+$2,000

Every other input stays at the value you set above — currently $50,000 for total to deposit. Differences are measured against the first column.

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How this calculator works

The deposit is divided equally across the rungs (any leftover cents go to the last rung). Each rung is a CD compounded monthly at your rate, held for 12, 24, … months. Maturity value = principal × (1 + rate/12)^months; totals sum the rungs exactly.

Assumes each rung is held to maturity with no early withdrawal and a single rate across terms. Real ladders reinvest maturing rungs at future rates you can't know today — treat this as the picture at one fixed rate.

What this assumes

Equal amounts across the rungs you specify, with each maturing rung reinvested at the longest term.
The rates you enter hold when each rung matures. In practice you reinvest at whatever the market offers that year.
No early withdrawal — the ladder's whole purpose is that you never need to break one.

What changes this number

Number of rungs: More rungs means more frequent access and a lower average rate; fewer means the opposite.
The rate curve: When short rates exceed long ones, a ladder gives up yield rather than gaining it — worth checking before building one.
Rung length: Should follow the date you might need the money, not the rate table.

A worked example

Take the $50k across 5 years at 4% scenario. These figures are produced by the calculator above, not written alongside it, so they always match what the tool returns.

What you enter

Total to deposit: $50,000
Number of rungs: 5 rungs
Interest rate (APR): 4%

What it returns

Total value at full maturity: $56,454
Total deposited: $50,000
Total interest earned: $6,454
Per rung: $10,000

Try an example

$50k across 5 years at 4%Shorter 3-rung ladder Larger deposit

Frequently asked questions

What is a CD ladder?

A CD ladder splits your money across several CDs with staggered maturity dates — for example five equal CDs maturing at 1, 2, 3, 4, and 5 years. Each year a rung matures, giving you access to cash (or a chance to reinvest at current rates) while the longer rungs keep earning higher long-term rates.

Why build a ladder instead of one big CD?

It balances yield against access. A single 5-year CD earns a good rate but locks everything up; a savings account stays liquid but pays less. A ladder captures longer-term rates on most of your money while still freeing up a portion every year — and it hedges against rates moving either way.

How does a ladder work at maturity?

The classic approach: when each rung matures, roll it into a new CD at the longest rung length (e.g. a fresh 5-year). After one full cycle, every rung is a 5-year CD but one still matures each year — you keep the high long-term rate with annual access.

Does every rung earn the same rate?

This calculator applies one rate to all rungs for simplicity, so longer rungs earn more only because they compound for longer. In practice the yield curve means different terms carry different rates — sometimes longer pays more, sometimes (an inverted curve) less. Check each term's actual APY when you build the ladder.