CD Ladder Calculator
Split an investment across multiple CDs with staggered terms and see each rung's maturity value plus the total return
Last updated: 2026-07-20
Rungs (each gets an equal share of the total investment)
| Rung | Term (Years) | APY |
|---|---|---|
| 1 | ||
| 2 | ||
| 3 | ||
| 4 | ||
| 5 |
A CD ladder splits a lump sum across several certificates of deposit with staggered maturity dates -- for example, five equal $2,000 CDs maturing in 1, 2, 3, 4, and 5 years, instead of one $10,000 CD locked up for 5 years. Each rung that matures can be withdrawn or reinvested (often into a new long rung at the top of the ladder, keeping it going indefinitely), which gives you regular access to part of your money while still capturing the higher APYs that longer terms typically pay. This calculator splits your total investment evenly across the number of rungs you choose, applies each rung's own APY and term, and shows both a rung-by-rung breakdown and the combined total return.
CD Ladder Formula
O(n) in the number of rungsApplied independently to each rung i: Pᵢ = that rung's share of the investment, tᵢ = its term in years
Total maturity value is the sum of every rung's maturity value
Each rung is just a single CD's compound-growth calculation (see our CD Calculator) applied to an equal share of the total investment, at that rung's own term and APY -- since longer terms usually carry a higher APY, a 5-rung ladder built with realistic increasing rates typically outperforms putting the whole balance into the shortest term, while still returning roughly a fifth of the money every year.
Use Cases
Balancing Yield and Liquidity
Capture higher long-term CD rates without locking up the entire balance for the longest term -- a portion matures every year.
Planning Reinvestment Timing
See exactly when and how much each rung returns, so you know when funds become available to reinvest or withdraw.
Comparing a Ladder Against a Single CD
See the combined total return of a staggered ladder against a single CD of the same total amount and longest term (use our CD Calculator for the single-CD comparison).
Building a Custom Ladder Structure
Adjust the number of rungs, individual terms, and per-rung APYs to model a ladder that doesn't follow the standard 1-through-N-year pattern.
Frequently Asked Questions
Why does each rung get an equal share of the investment?
Equal-sized rungs are the standard CD ladder structure, since it produces a predictable, evenly-spaced amount of matured cash each period. You can still give each rung a different term and APY -- only the investment split itself is even.
Should every rung have the same APY?
Not necessarily -- banks typically pay a higher APY for longer terms, so a realistic ladder often has increasing APYs from the shortest to the longest rung. Edit each rung's APY individually to match the actual rates you're being offered.
What happens when a rung matures?
You can withdraw that rung's balance, or reinvest it into a new CD -- commonly a new top rung at the ladder's longest term, which keeps the ladder self-sustaining. This calculator computes a single pass through to each rung's original maturity, not ongoing reinvestment.
Does this account for early withdrawal penalties?
No -- like the single CD Calculator, this assumes every rung is held to its full term. Withdrawing a rung early would typically incur a penalty that reduces its actual payout below what's shown here.
How is the weighted average APY calculated?
It's each rung's APY weighted by its share of the total investment. Since rungs are equal-sized here, it works out to the simple average of the per-rung APYs.
References
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